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.