Amidst the consistent dips that top cryptocurrency Bitcoin (BTC) is witnessing, crypto strategists suggested the metric to look at accurate potential bitcoin bottoms.
Recently a pseudonymous crypto trader dubbed Rekt Capital on Twitter has told on the social media platform that the Relative Strength Index (RSI) of the flagship cryptocurrency Bitcoin (BTC) is reaching the historic bottom levels, and it could be indicating the bouncing back of biggest cryptocurrency by market cap, is just down the road. The crypto analyst is one amongst the widely followed experts in the field and is looking at this one crucial metric that has been accurate about bitcoin (BTC) bottoms for many instances in the past.
According to the crypto analyst, the Relative Strength Index of bitcoin is currently reaching the levels it had in March month of the year 2020, which indicates a best case scenario of bitcoin reaching its bottom anytime soon. However, there were several instances where the RSI had dipped much lower to reach the bear market, like bottoms in 2015 and 2018. He further said that if the levels of RSI would go lower, then there could be a reversal point from the black higher low.
In a nutshell, the RSI level of an asset is an indicator of momentum that measures recent prices that determine whether there is an oversold or overbought in a particular specific timeframe.
Further, as per the crypto analyst said that three times earlier, the RSI of Bitcoin dipped to such an extent that it is near almost now that a bear market was found to ignite a recovery. He said that bitcoin (BTC) RSI is entering such a period that has led up to outsized returns like never before, over the investment for investors looking to stay for long terms in the space. He also outlined that recovery from the similar area had been the same as in January 2015, December 2018, and March 2020, where they all were bear market bottoms.
Also, according to Rekt Capital, recently, bitcoin’s RSI reached the same level that it was in March 2020. Before, the leading asset started at a rally that saw its surge all the way up by the end of the same year. The top cryptocurrency is currently trading at about $29,247, which was approximately seven days earlier, trading at $31,319.
Source: https://www.thecoinrepublic.com/2022/05/21/what-possibilities-for-crypto-analysts-to-be-correct-about-metric-signals-bitcoins-accuracy/