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

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
one-month
lows,
monthly
RSI
is
additionally
printing
a
pattern
that
has
only
been
observed
once
before,
fellow
trader
and
analyst
TechDev

responded
.

“Only
been
one
other
hidden
monthly
bull
dive
in
Bitcoin’s
history
I
could
find.
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 original article here