While the leading cryptocurrency Bitcoin and altcoins started the new week with a decline, a news about Mt.Gox payments caused the BTC price to fall below $ 61,000.
While investors are worried about further declines, some market analysts also predict that the decline may continue.
At this point, while $ 50,000 levels were being discussed, experienced analyst Ali Martinez analyzed the historical performance of the Relative Strength Index (RSI), which is one of the important arguments on price.
Accordingly, Martinez emphasized that Bitcoin's daily RSI has reached the oversold zone only three times in the last two years.
Noting that the BTC RSI is currently at 28, the analyst said that this indicates an oversold situation.
Stating that historically, after the RSI reached the oversold zone only three times in the last two years, Bitcoin experienced significant price increases of 60%, 63% and 198% respectively, Martinez argued that this decline could be an important opportunity to buy the bottom.
“In the last two years, the Bitcoin daily RSI reached the oversold zone three times, which subsequently caused the BTC price to increase by 60%, 63% and 198% respectively.
With BTC now below $62,000 and the RSI in oversold territory again, this could be a significant opportunity to buy the dip!”
RSI is an indicator often used to identify overbought or oversold conditions in the market. When the RSI falls below 30, this indicates that the asset is oversold and the price may rise. The oversold situation in Bitcoin RSI strengthens the idea that Bitcoin may be ready for another upward momentum in the coming days.
Even though the current RSI level gives a bullish signal for Bitcoin, do not make your investment decisions based on a single data and indicator.
*This is not investment advice.