The primary cryptocurrency experienced another substantial decline over the past 24 hours, potentially due to geopolitical tensions among other factors.
However, one important indicator signals that bulls might soon regain control.
First Time in History
As of this writing, Bitcoin trades around $63,000, down 5% on a daily basis, while its market capitalization has fallen below $1.3 trillion. Despite the grim reality, X user il Capo Of Crypto spotted an interesting development.
The analyst, who has almost 1 million followers, said the asset’s Relative Strength Index (RSI) has reached an oversold zone on a 10-day scale. Moreover, they argued that this has occurred for the first time in the history of BTC.
The technical analysis tool measures the speed and magnitude of recent price changes and is used by traders to identify potential trend reversals. It ranges from 0 to 100, and ratios below 30 indicate the asset is oversold and could be headed for a resurgence, whereas anything above 70 signals overbought territory.
One person commenting on the post claimed that “all sorts of indicators are going to be acting unusually going forward.” il Capo Of Crypto agreed with the thesis, saying the RSI is not going to be used as “a sole signal, but it’s great for confluence.”
BTC’s Market Value to Realized Value (MVRV) also suggests that a rebound might be knocking on the door. It compares the current value of all coins to the price at which people originally paid to acquire their holdings. According to CryptoQuant, readings below 1 indicate a bottom, whereas anything above 3.7 signals the top is in. Over the past seven days, the MVRV has been declining, currently pointing at 1.18.
The Bears Might be Resistant
Despite the aforementioned bullish factors, many other indicators suggest the bear market is far from over. Over the past several weeks, crypto funds have been bleeding heavily, with outflows significantly outpacing inflows.
According to SoSoValue, investors have withdrawn billions of dollars from spot BTC ETFs, a trend that may signal further downside risk for the price.
Meanwhile, the amount of BTC stored on crypto exchanges has risen over the last few days. This doesn’t guarantee a further correction but is often interpreted as a pre-sale step, thereby potentially setting the stage for additional weakness in the market.
The post This Has Never Happened in Bitcoin’s History: Will BTC Finally Rebound? appeared first on CryptoPotato.
