Bitcoin price plunges drastically as RSI reaches most ‘oversold’

• Bitcoin price has refused to stem recent losses
• Lower weekend volume was poised to deliver some classic erratic moves
• Bitcoin open interest still has not flushed
• Analysts identified that a source of slight relief came in the form of BTC’s relative strength index

Bitcoin price has seen around 60% growth over the past year. However, last year, we witnessed the coin’s volatility due to environmental and regulatory concerns. Many believed that the BTC price would have hit $100k by the end of 2021, but the asset failed to achieve such a high. However, the hodlers and traders are now bullish for this year. The flagship crypto price seems to have refused to stem recent losses this Saturday, as predictions of a flight to $33k and lower looked increasingly likely to become a reality.

Few silver linings available for the bulls

Bitcoin price has declined to $34,000, as per data from TradingView, during the first half of Saturday. Following the scenario, the analysts have found few silver linings available for the bulls. 

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According to a few experts in the cryptosphere, lower weekend volume was poised to deliver some classic erratic moves after the coin designed by Satoshi Nakamoto lost $40k support on Friday.

Read More: El Salvador Buys $15 Million Worth Of Bitcoin Really Cheap

Notably, some, including El Salvador, made the most of the new lower levels. Others voiced concern that despite the drop, pressure still remained on bulls. Still, open interest has not flushed. According to William Clemente, a trader, and analyst, it is observed that derivatives traders are still attempting to fight the trend. Byzantine General cited that after all such carnage and absolute state of panic, funding somehow is not giga negative. Futures are not backward, and open interest barely went down.

Bitcoin price RSI sinks

Observing the Bitcoin price actions, analysts identified that a source of slight relief came in the form of BTC’s relative strength index (RSI) on the day. Notably, the indicator plunged to its lowest level since last year’s March crash.

Besides, we have observed that the daily RSI stood at just 20 Saturday, which is well below the classic oversold zone. According to experts in the cryptosphere, the scenario seems a bit more reliable than the asset alone. The total market cap of Bitcoin is at the next level of support, while the daily RSI hits the lowest level since last year’s crash.

Tech stocks are in the line of fire

While observing the crypto market, we have also noted that equities sentiment was also on the lowest level since the crash last year. Indeed, the stock market had taken a hit towards the end of the week. It is worth noting that the tech stocks are particularly sipping, and the cryptocurrency market is again showing the extent of its positive correlation.