The Bitcoin Relative Strength Index revealed that the digital currency is being oversold at levels similar to those of 2020, when the Covid-19 crisis began.
The Relative Strength Index (RSI) is used to identify buy and sell signals. The RSI this time pointed out that it shows that the digital currency is being oversold at similar levels of the year 2020, when the Covid-19 crisis began.
According to the following graph, the oversold level in daily BTC is at 20, when at the beginning of this month it reached 60, this represents a drop of 66%.
According to analysts, this movement can be interpreted as the currency could start a bullish course.
If you take into account what happened in March 2020, After descending to minimums, Bitcoin advanced until it touched its maximum historical price close to US $ 69,000.
How to read the RSI? When this indicator reaches an oversold level (below 30), it then begins to rise. A sell signal is generated when the RSI reaches an overbought level (above 70) and then starts to decline.
This is a technical indicator used in financial markets that was developed by J. Welles Wilder and first published in his book “New Concepts in Technical Trading Systems” in 1978.
The next halving is scheduled to take place on April 4, 2024, that is, we are eight months away from this event. Considering the low RSI and other analysts’ forecasts, a bull market is likely on the way.
Source: Ambito
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