The Weekend Bitcoin Price Correction and RSI Levels
Over the weekend, Bitcoin experienced a price correction that brought the Relative Strength Index (RSI) to levels not seen since it was around $40,000 USD.
The Impact on Bitcoin’s Price Correction
- The daily RSI of Bitcoin on Saturday dropped to just over 42 points, a level not seen since January 25th.
- RSI stands for Relative Strength Index, measuring price strength.
- RSI values range from 0 to 100, indicating overbought or oversold conditions when exceeding 70 or falling below 30, respectively.
- Between February 9, 2024, and March 14, Bitcoin stayed consistently in overbought territory.
- Since the historic peak on March 14, the daily RSI of Bitcoin remained above 45 points.
Comparison with Previous Months
- The last time Bitcoin’s daily RSI was below 45 points was on January 25th when it was at $40,000.
- Bitcoin was last in the oversold zone in August 2023 before the news on Grayscale and ETF approval.
- The recent drop below 45 indicates a shift in the ongoing bull run.
- Bitcoin’s daily RSI has not significantly risen above 60 since March 16.
The Weekend Price Correction
- The rapid drop in Bitcoin’s price below $66,000 over the weekend was triggered by Iran’s attack on Israel.
- The panic selling led to a swift decline from $67,000 to $61,000 but quickly rebounded to $65,000.
- Panic selling was limited to exchange-held Bitcoin as inflows to exchanges were minimal.
- Stock exchanges being closed minimized the impact of the crash on ETFs.
- Bitcoin’s price recovered after the news of failed attacks and approval of Bitcoin spot ETFs in Hong Kong.
Hot Take: Bitcoin’s Future Outlook
The recent price correction and RSI levels indicate a shift in the market sentiment towards Bitcoin, suggesting a potential change in the ongoing trend. Stay vigilant and keep an eye on the RSI index and any significant news developments that could impact Bitcoin’s price in the near future. This could be a critical time to reassess your investment strategies and ensure you are prepared for potential market volatility.
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