The past few weeks have been quite challenging across the entire cryptocurrency market, to say the least. Total capitalization has dropped more than $300 billion in just the past seven days.

Bitcoin, along with most other cryptocurrencies, is having price issues. However, some technical indicators may suggest that the bottom is approaching.

This Monday, Bitcoin is seeing a double-digit drop (13.5%) on the weekly chart and is trading at around US$41,000. The rest of the market has also fallen considerably. Ethereum is down 20%, BNB is down almost 20%, Solana – 22% and so on.

A widely used indicator – the Relative Strength Index (RSI) – may suggest that the fund is forming.

This is a metric that represents a momentum oscillator and measures the speed and change of price movements. It ranges between 0 and 100.

Traditionally, when the RSI is above 70, the asset is considered overbought, and when it is below 30, it is considered oversold.

Yesterday, January 9, the RSI was at its lowest point since the May crash. The last time it was this low was in March 2020 – during the fall attributed to covid.

Bitcoin RSI
Bitcoin chart indicating the last big lows and the RSI indicator. Play/Twitter.

What this shows is that on two separate occasions in the not-too-distant past, when Bitcoin’s RSI dropped to the levels it currently is, it marked some kind of local fund, and the price increased substantially in the following months.

Another possible bottom indicator could be the Bitcoin Fear and Greed Index – a gauge for current market sentiment based on various criteria such as volatility, market momentum, social media, polls, dominance, trends and so on.

Currently, the index shows that the market is in a state of “extreme fear”, as it has been for a few weeks.

Read more:

NovaDAX is completing three years!

One of the largest cryptoactive brokers in Brazil turns three in November and you are the winner!

There will be up to 30 currencies with zero rate for transactions and over 80 currencies listed, with instant cash withdrawal and high liquidity.

The cryptocurrencies at the best rates on the market! Simply activate the Novawards free program and enjoy reduced rates by up to 75%.

Discover the NovaDAX Card and ask for yours now.

LEAVE A REPLY

Please enter your comment!
Please enter your name here