October 5, 2022

Is the Bottom In? Bitcoin’s RSI at Lowest Point Since May 2021 Crash

2 min read

The previous weeks have actually been rather difficult throughout the whole cryptocurrency market, to say the least. The total capitalization is down over $300 billion in the last 7 days alone. Bitcoin, along with the majority of the other cryptocurrencies, is struggling in terms of pricing. Nevertheless, some technical signs might suggest that the bottom is closing in.

  • At the time of this writing, Bitcoin is down 11% in the previous 7 days and is trading at around $42,000. The remainder of the market is also down significantly.
  • Ethereum is down 17.5%, BNB is down 16.6%, Solana – – 19 %, and so forth. One widely-used indicator – – the Relative Strength Index (RSI) – – may recommend that the bottom is closing in.
  • This is a metric that represents a momentum oscillator, and it measures the speed and modification of price motions. It oscillates between 0 and 100.
  • Traditionally, when the RSI is above 70, the asset is considered overbought, and when it’s below 30, it’s thought about oversold.
  • Yesterday, on January 9th, the RSI was at its lowest point since the crash that took place back in May. The previous time it was this low remained in March 2020 – – during the COVID crash.
Source: Twitter What this goes on to show is that on two different occasions in the not-so-distant past, when Bitcoin’s RSI dropped to the levels, it’s presently at, this has actually marked some sort of a regional bottom, and the rate has actually increased significantly in the months after that.
  • Another possible bottom sign might be the Bitcoin fear and greed index – – a gauge for the current sentiment throughout the market based upon different requirements such as volatility, market momentum, social networks, studies, dominance, patterns, etc.
  • At the time of this writing, the index reveals that the market remains in a state of “extreme fear.”