Bitcoin May Have Further to Drop, RSI Suggests
Analyst Byzantine General recently noted that the Relative Strength Index (RSI) — an oscillating indicator that tracks if an asset is overbought, oversold, or somewhere in between by factoring in the “magnitude of recent price changes” — for the one-day Bitcoin chart has hit 25, meaning slightly oversold.
The significance of this: Bitcoin’s one-day RSI rarely drops below 30, and normally hits 20 when it does. With this precedent in place, there is a high likelihood that BTC will continue to head lower from current price levels.