Bitcoin Price Analysis: How Oversold Can BTC Get?

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The price of Bitcoin (BTC) continues to drop after smashing through critical support levels more than ten days ago — taking the first and foremost cryptocurrency into historic oversold conditions. How oversold can it get? Let’s take a look at a little Bitcoin price analysis.



Unless you live under a rock or don’t follow Bitcoin whatsoever, you’re probably already well aware of the fact that the price of BTC collapsed through critical support at around $6000 more than ten days ago — creating a cascading effect and dragging the entire altcoin market down with it.



Relative Strength Indexes

Bitcoin has never been more oversold on the standard daily Relative Strength Index (RSI) — a technical indicator used in the analysis to illustrate current and historical strength or weakness.

As shown below, the RSI is hanging out well below the 20.0000 level — and has been for quite some time. This indicates that BTC is currently oversold, suggesting that the market-leading cryptocurrency is due for some buy action.

The above chart also illustrates the fact that the daily Stochastic Relative Strength Index is also spending a lot of time in oversold territory. Making matters worse, it is currently experiencing a bit of a bearish cross, indicating that more selling may be inbound before momentum reverses.

Weekly Weakness

Perhaps even more interesting is the fact that the weekly RSIs are also approaching oversold conditions — a rarity when it comes to Bitcoin (BTC).

As illustrated above, the weekly RSI has headed straight downwards and is just about touching the bottom line — indicating that we are close to entering oversold conditions on this longer timeframe.

Meanwhile, the Stochastic RSI is also re-entering oversold conditions. If history is any indication, the weekly Stoch RSI likes to hand out down there for some weeks — so it may be some time before we see a legitimate relief rally occur. Until then, one should expect little more than dead-cat bounces and guppy rallies in the near-term.

What do you think about the price of Bitcoin (BTC)? Let us know your thoughts in the comments below!

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Dani Polo is the Head of SEO of BeInCrypto.com. For over 7 years Daniel provided SEO for companies ranging from small businesses all the way up to Fortune 500 corporations. Focused in Fintech and Finance sector. Daniel earned his Bachelor of Science in Computer Science from Universitat Politècnica de Catalunya. He also has certifications from <a href="https://www.startupschool.org/companies/OfSpP1eI1th6SQ"> YCombinator Startup School</a>, SEMRush and Hubspot. He's currently focused on machine learning and artificial intelligence.

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