In what some might see as a buy signal, the four-hour RSI has plummeted to levels not seen since Bitcoin’s plunge to $3200 in 2018.
Bitcoin is on the descent and investors are split whether to run to the exit or buy the dip.
The relative strength index (RSI) on the four-hour timeframe has plummeted to levels not seen since December 2018.
The Crypto Fear & Greed Index has also plummeted to a low of 11, currently sitting in ‘extreme fear’ territory.
RSI is generally used as one metric to judge market movements. It is a momentum indicator which measures the relative magnitude of price movements. This ultimately tells us whether an asset is oversold or overbought.
RSI has commonly been invalidated many times in the crypto-markets and is seldom the only metric traders go by. Still, by any estimate, the current poor RSI on the 4H timeframe is a serious cause for concern.
Since the time the tweet was posted, Bitcoin has made a steady rebound from its local lows. It is currently sitting above the $10,000 price point at around $10,130 at the time of writing.
Still, there is little reason to be immediately bullish from this rebound. The market will likely still remain choppy until Bitcoin successfully stabilizes above $10,000 or dumps lower. Few altcoins have rebounded despite the Bitcoin bounce.
Fear will likely remain on the menu for the cryptocurrency market for the short-term as investors gauge the market and whether it is safe to reenter. As of now, it looks perilous — but some may find there is room for optimism.
Do you believe Bitcoin can remain above the $10,000 price point or are we due for another ‘double bottom’ below this level? Let us know your thoughts in the comments down below.
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