Bitcoin monthly RSI lowest since September 2020 in fresh ‘oversold’ signal

Share This Post

As a “hidden bullish divergence” begins to play out, anticipation combines with calls to plan a Q1 market exit.

A key Bitcoin (BTC) metric has just reached its lowest levels since the months after the March 2020 market crash.

As noted by popular analysts on Jan. 5, Bitcoin’s relative strength index (RSI) is printing a “hidden bullish divergence” on monthly timeframes — and if it plays out, they say, the result will be very pleasing for hodlers.

RSI falls below summer 2021 floor

Amid frustration at the lack of direction on BTC/USD, it is no secret that a host of on-chain indicators has long demanded higher price levels.

The current $46,000 may slide further, but the classic RSI metric now shows just how comparatively “oversold” Bitcoin is at that price.

“Bitcoin monthly RSI is currently lower than the May-July 2021 correction,” popular analyst Matthew Hyland revealed, referring to Bitcoin’s summer correction after the May miner upheaval.

Whereas that period sent BTC/USD to $30,000 and monthly RSI to around 60, now, the price is higher but RSI lower — just 58.95. The metric was lower only in September 2020, with BTC/USD at around $10,000.

BTC/USD 1-month candle chart (Bitstamp) with RSI. Source: TradingView

Along with the 1-month lows, monthly RSI is additionally printing a pattern which has only been observed once before, fellow trader and analyst TechDev responded.

“Only been one other hidden monthly bull div in bitcoin’s history I could fine. Let’s see if it confirms,” he wrote.

RSI is traditionally used to determine how overbought or oversold an asset is at a given price point and has served Bitcoin particularly well in recent months.

In mid-October, for example, RSI was at 68, TechDev noted that that level was still far from the point at which Bitcoin hits long-term price tops.

Timing an exit

Bitcoin, meanwhile, has not convinced everyone that the future is bright.

Related: Bitcoin open interest matches record high amid predictions of BTC price ‘fireworks’ this month

Some popular traders have high price targets which they say must be broken for the market to flip bullish.

Among them is Pentoshi, who has said that he will only reevaluate the market significantly on a macro perspective once $58,000-$60,000 returns and holds.

The structure of the market as 2022 begins, he argues, is wholly unlike at other points in the period beginning in March 2020.

“Odds aren’t favorable imo. Although I think Q1 gives some decent exits for many,” he concluded in a digest of his outlook at the start of the year.

Read Entire Article
- Advertisement -spot_img

Related Posts

Former Soccer Star Ronaldinho: Time for Crypto to Go Mainstream

In a now-deleted message posted on June 23 on X, former Brazilian soccer superstar Ronaldo de Assis Moreira, known as Ronaldinho, declared his support for crypto, stressing that it was time for this

Julian Assange free from prison – leaves UK for Saipan after striking US deal

Julian Assange, the founder of WikiLeaks, has been released from Belmarsh prison in the UK after reaching a plea deal with US authorities, marking a significant development in his long-running legal

Galaxy Digital Predicts Minimal Bitcoin Sell Pressure From Mt. Gox Resolution

In an analysis shared via X, Alex Thorn, the head of research at Galaxy Digital, has projected that the Bitcoin market may face less sell pressure than anticipated from the resolution of the Mt Gox

Don’t Fret The DOGE Dip: Analyst Predicts Big Rebound To $2

The cryptocurrency market has been battered by recent events, with Bitcoin leading the decline and dragging many altcoins down with it However, Dogecoin (DOGE), the memecoin often dismissed as a

Pepe Price Prediction: Pepe Pumps 13% As Analysts Say This Meme Coin Rival Might Explode Exponentially

The Pepe price surged 13% in the last 24 hours to trade at $000001170 as of 02:33 am EST on trading volume that skyrocketed 78%

Spot Bitcoin ETFs Record Worst Outflows Since April After $1.3B Leave Their Reserves In 2 Weeks

US spot Bitcoin ETFs (exchange-traded funds) saw nearly $13 billion leave their reserves collectively over the last 2 weeks, marking the largest spate of outflows