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Bitcoin (BTC) has experienced significant growth since the turn of the year; however, some of those gains have been lost in recent weeks with its price falling from above $30,000 to just above $26,000 leaving many in the space split on its future price action.
Despite the price drop, crypto analyst Ali Martinez has identified a buy signal on Bitcoin’s 4-hour chart. After spotting a developing Relative Strength Index (RSI) bullish divergence pattern, Martinez said BTC could surge as high as $27,570, implying a potential upside of 4.5% from current levels.
However, he noted BTC could also swing either way, depending on whether it can hold above the current $26,000 support level, the crypto expert added in a tweet on Friday, May 12. If it doesn’t, Bitcoin could tumble by 4.49% to $25,200.
Apart from that, the recent support lower-than-expected inflation report also might have contributed to the sell-off, despite the initial push higher from cryptocurrencies right after inflation data was published.
Despite the recent price collapse, Bitcoin remains up nearly 60% since the start of 2023. The world’s number one crypto coin saw a sharp rebound this year following a disastrous 2022 that sent crypto prices to multi-year lows.
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