Bitcoin triggers weekly oversold signal for the first time since June 2022
BlockBeats News, February 5, according to Tradingview data, as the price of bitcoin fell below $71,000, bitcoin triggered a weekly RSI oversold signal for the first time since June 2022, now reported at 29.21.
RSI stands for Relative Strength Index, which is one of the most commonly used technical analysis indicators in financial markets such as stocks, futures, forex, and cryptocurrencies. It was proposed by American technical analysis expert J. Welles Wilder in 1978, mainly to measure the speed and magnitude of price changes, and to determine whether the market is overbought or oversold, thereby helping investors identify possible reversal or trend continuation signals. Generally, when the RSI value falls below 30, it enters the oversold zone.
The appearance of an RSI oversold signal does not necessarily mean that the price is at an absolute low. In June 2022, bitcoin once fell below $18,000, and the RSI value at that time was about 26.2. In November of the same year, bitcoin dropped to $15,600 during the FTX crash, but the RSI value was 31.4 at that time, showing a divergence compared to the June low (i.e., the price made a new low, but the selling pressure eased somewhat).
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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