Bitcoin’s RSI at its lowest point since May 2021

Bitcoin’s RSI at its lowest point since May 2021
The last few weeks have been quite challenging for the cryptocurrency market as a whole, to say the least. Total capitalisation has fallen by over $300 billion in the last seven days alone. Bitcoin, like most other cryptocurrencies, is on the big downside. However, some technical indicators may suggest that we are getting closer to the bottom.

At the time of writing this, the price of Bitcoin has fallen 11% in the last seven days and stands at around $42,000. The rest of the market has also fallen significantly.

Ethereum is down 17.5%, BNB is down 16.6% and Solana is down 19%. One commonly used indicator – the relative strength index (RSI) – may suggest that the bottom is getting closer.

It is a metric that represents a momentum oscillator and measures the speed and change of price movements. It oscillates between 0 and 100. Traditionally, when the RSI is above 70, an asset is considered overbought, and when it is below 30, it is considered oversold.

On January 9, the RSI was at its lowest point since the crash in May. The previous time it was this low was in March 2020. – During the start of the COVID pandemic.

What this further shows is that on two separate occasions in the not so distant past when Bitcoin’s RSI fell to the levels it is at now, it marked a local bottom of sorts and the price rose significantly in the months that followed.

Another possible bottom indicator could be Bitcoin’s Fear and Greed index or Fear and Greed – an indicator of the current mood of the market based on various criteria such as volatility, market dynamics, social media, polls, dominance, trends and so on.

At the time of writing this, the Fear and Greed index shows that the market is in a state of “extreme fear”.

12/01/2022 – Mr.Advice NEWS

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