Bitcoin (BTC) Oversold? This Technical Indicator Says Almost
The price of Bitcoin (BTC) has dropped more than 23% in the last week, falling below $5,000 for the first time since October of 2017. While investors look for any sign of capitulation or trend reversal, there is one technical indicator that is sitting at a 3-year low.
The Relative Strength Index (RSI), a momentum indicator that measures the magnitude of recent price changes to analyze overbought or oversold conditions, for Bitcoin currently sits at 36, a level that was last seen at the beginning of 2015 when BTC was trading below $200.
An RSI of 30 or below is commonly interpreted as indicating a state of being oversold, and it looks like Bitcoin is rapidly approaching this range. However, it’s important to note that assets can trade like this for an extended period.
Bitcoin’s latest price action has also dragged down the rest of the crypto market. The AltDex 100 Index (ALT100), a benchmark index for large-cap cryptocurrencies and tokens, is currently down 24.7% over the last 7 days.
More: AltDex 100 Index
Photo: Marco Verch / Flickr
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.