Bitcoin Strikes Highest Oversold Level Since March 2020

Bitcoin Strikes Highest Oversold Level Since March 2020

Bitcoin’s price has dwindled significantly in the last 72 hours. Earlier today, the price dropped below $48,000, creating panic and uncertainty as to how low the asset will go before a bounce back.

However, perhaps the most interesting thing about the drop is that Bitcoin has never been so oversold since March last year. The Relative Strength Index (RSI) has dropped as low as 31.93, meaning the asset is greatly undervalued right now.

BTCUSD Chart By TradingView

The RSI is an indicator used to determine if an asset is overbought or oversold. In the case of the former, it means the asset is overvalued and is likely to start dropping. In the latter case, however, it means the asset is undervalued and buyers will likely step in to reverse the price trend.

Although the RSI has to drop below 30 to be considered oversold, the 31.93 is considered significantly oversold already considering that the cryptocurrency market is generally bullish in the long term.

All things being equal, this means that Bitcoin could be preparing for a bounce that may go significantly higher than the previous peak, even though the short-term sentiment is very bearish at the moment.

Share:

Share on facebook
Facebook
Share on twitter
Twitter
Share on pinterest
Pinterest
Share on linkedin
LinkedIn
On Key

Related Posts

Bitcoin Options Volume Explodes Higher As Market Warms Up To First U.S. BTC ETF

Bitcoin derivatives markets are experiencing increased enthusiasm as Bitcoin price pulled past $61,000 on Monday, with open interest in Bitcoin options increasing by 107% over October alone. This week, the weekly options volume reached $1.5B and the trend aligns with the overall bullish market sentiment according to the latest market review by Glassnode analysts. “The

Breaking: The First Ever Bitcoin Futures ETF in the USA to Debut on Tuesday

The first-ever Bitcoin ETF from ProShares is all set to debut on New York Stock Exchange (NYSE) on Tuesday. The Bitcoin Strategy ETF that tracks the price of the Bitcoin Futures market would be the first of its kind to get the approval of the United States Securities and Exchange Commission (SEC) after years of