The Bitcoin RSI has just reached its lowest level since 2016

CoinDesk reports that signs are emerging that the sale of Bitcoins may be over-exploited for this week.

Source

According to data from Bitfinex, one of the most important exchanges in the world, after reaching a minimum of 70 days at the mark of 6133 USD per token, the Relative Strength Index (RSI) of Bitcoin reached a level of 26.4, the which was last seen in August 2016.

The Relative Strength Index, or RSI, is a statistical measurement method used to identify the overbought and oversold conditions of an asset by "comparing the magnitude of recent gains and losses over a specific period of time to measure the speed and the price change. "

When these levels are reached, the indicator indicates that the price action approaches a level below the real value of the asset, where there tends to be a price rebound.

BTC / USD seldom reaches oversold levels above 30 in the daily time frame, but when it does, historically the price has performed well for experts.

The past 6th of February was the last time that the RSI levels of the first cryptoactive were below 30, and at that time, the prices went up from 6,000 USD to 11,788 USD in a range of only two weeks, which resulted in a Approximately 96% gain.

Before that happened, on August 14, 2016, BTC registered a level of RSI just above 26 when the price showed a value of 563 USD in Bitfinex. Even this week, the price of Bitcoin has not dropped from 563 USD and current levels represent a price increase of approximately 980%.

But while oversold indicators tend to indicate the exhaustion of the downward trend, investors are likely to want to proceed with caution before holding as Bitcoin's daily RSI has reached lower levels.

According to Bitfinex data, the lowest level recorded since 2013 was 16.1 on August 18, 2015.

At the time of writing, the first cryptoactive has a value of USD 6,665 according to the CoinMarketCap price index, which implies an increase of approximately 4% in the trade volume of the last 24 hours.

At least for now, a sudden recovery is not expected, but as always, we remind our readers that the cryptocurrency market is unstable, so that the BTC can start to move up any other asset without a specific reason. justify it.

Source

In the graph above you can see in detail the movements of BTC during the current week.