After spending some cozy time in the $38.5k region, BTC’s price crawled back above $40k in the early hours of Saturday. In fact, at press time, the king coin was valued at $41.5k on the back of gains worth 4.5% in 24 hours. Additionally, the global crypto-market cap was valued at $1.6 trillion.
Now, investors who missed the Bitcoin train at the $30k – $35k station currently face a dilemma. Should they be boarding the train at the $40k-$42k level?
Well, these market participants still have a fairly good opportunity to redeem additional coins at this stage. Most of BTC’s on-chain indicators, at the time of writing, were flashing a “buy” signal. However, they need to act quickly before it’s too late.
Assessing the buy signal
Bitcoin’s RSI, at press time, projected a value of 71.74. As a rule of thumb, any value over 70 suggests that the asset is overbought. The mere existence of buying pressure in the market stirs in bullishness. Even the Stochastic RSI indicator, for that matter, exhibited a clear buy signal a couple of days back.
According to the attached chart, the rate of change from the sell signal in May to the most recent buy signal has been quite impressive. In fact, this indicator doesn’t emit a buy signal that often. Whenever it does, it turns out to be fairly accurate, keeping the broader context in mind.
The last buy signal was flashed back in November…