Bitcoin Hits Its Most Oversold Level Since August 2024
Bitcoin (BTC) has dropped more than 10% over the past two weeks, from about $98,000 to $86,000 at the time of writing. High sales pressures push flagship cryptocurrencies that have never been seen since August 2024 to beyond the level.
Bitcoin is oversold, how long should I buy it?
According to x postal By experienced crypto analyst Ali Martinez, BTC entered an overselling condition that had never been seen since August 2024. Specifically, Bitcoin’s Relative Strength Index (RSI) has dropped to its lowest level in the past seven months.
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For uninspired people, RSI measures Bitcoin’s momentum at a ratio of 0-100, with a value above 70 and a condition with excessive signals below 30 means exceeding the level. According to the chart below, the RSI of BTC is below 30, indicating that digital assets may be significantly exceeded.
It is worth noting that BTC’s last overselling – August 2024 – caused a 33% price increase, increasing digital assets from $49,000 to $64,000 in two weeks. Today, a similar trajectory could push BTC to around $110,000.
Wolf of all streets of crypto investors have similar ideas about Bitcoin’s RSI. Investors shared the following 4-hour chart, explain:
The difference between bullish and overselling RSI remains very important. Currently, RSI is still at a higher low. We need to see a clear “elbow” on the next candle to confirm. There is nothing here.
Meanwhile, crypto analyst Rekt Capital predict BTC may have further disadvantages. The analyst stressed that BTC is getting closer to filling the gap between $78,000 and $80,700 for the Chicago Mercantile Exchange (CME), which was created in November 2024.
For uninformed situations, the CME gap refers to the price difference between Bitcoin’s last transaction price before the weekend and when the market reopens. It is generally believed that Bitcoin can fill these gaps, and as part of the natural market correction, the gap is the price support level or resistance level.
Mixed opinions on BTC price action
The recent cryptocurrency market retreat has led to a disagreement among analysts. For example, the recent glass festival analyst explain The chance of entering a bear market is “not high”.
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Similarly, the latest analysis by Andre Dragosch, head of European research, instruct The BTC may be undervalued at current market prices. On the contrary, standard charter predict BTC prices may drop by another 10%.
Long-term bullish cases of digital assets, although opinions on short-term price action may be divergent remains Intact. At press time, BTC was trading at $84,963, down 2.4% in the past 24 hours.
Featured images from Unsplash, charts from X and TradingView.com
