Crypto analysis platform Matrixport reported in its latest report that Bitcoin (BTC) is approaching the oversold region in terms of technical indicators, and these levels have historically paved the way for price recoveries.
Matrixport: Bitcoin Approaching Oversold Territory, Current Levels Could Present Buying Opportunity
Bitcoin has retreated into risk territory after a significant decline in current market conditions, according to a report by Planet Daily. Matrixport notes that these levels could be attractive for “buying the dip,” based on on-chain data and changes in market structure.
However, company analysts emphasized that while current price levels are amenable to short-term recoveries, new macroeconomic supporting factors are required for a sustained upward trend to begin. They noted that such a strong catalyst is currently lacking in the global economic environment.
From a technical perspective, indicators like the RSI are slowly starting to show signs of stabilization and recovery. However, according to Matrixport, further liquidation and a period of rebalancing in spot trading may be necessary to confirm that the market has truly formed a bottom.
As a result, the report advised Bitcoin investors to remain cautious despite oversold signals and hold on to long-term positions until a clear bottom formation signal is seen.
*This is not investment advice.
Continue Reading: Crypto Analysis Platform Matrixport Says Bitcoin Has Reached Oversold Territory! Buying Opportunity? Here Are the Details
