2023-08-22 13:41:19
Bitcoin is as cheap as it was in March 2020, suggests indicator
BlockTrends – Recently, Bitcoin’s daily RSI indicator reached alarming levels, similar to those seen during the COVID-19-induced crash in March 2020, points out from BlockTrends Research.
The RSI, a widely used technical indicator, fluctuates between 0 and 100. Readings above 70 indicate an overbought condition, while readings below 30 suggest an oversold condition.
The recent dip of Bitcoin’s daily RSI below the 20 mark has caught the attention of the cryptocurrency community. This level of oversold territory has not been seen since the turbulent days of the March 2020 market crash.
Market analysts are keeping an eye on this RSI move as it could signal a potential change in Bitcoin’s price trajectory. Historically, extremely oversold conditions have often preceded significant price rebounds.
However, it is crucial to approach these indicators with caution. While oversold RSI levels can offer insight into potential price reversals, they are not foolproof predictors.
Bitcoin is currently trading at $26.013, representing a 0.34% drop on the day. As well, the recent drop of nearly 12% made last week the worst since the FTX collapse.
Events such as rumors of a sale by SpaceX and the bankruptcy filing issued by Evergrande (OTC:), hit market sentiment. However, as already explained by BlockTrends Research, the main driver of the price devaluation was the excessively leveraged futures market.
However, it is essential to remember that cryptocurrency markets are notorious for their unpredictability. A number of factors, both macroeconomic and technological, can influence its direction. Therefore, while indicators provide valuable insights, investors should always proceed with caution and conduct their own research.
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