Bitcoin Weekly Rsi Falls To Most Oversold Levels Since $15k BTC Price

Bitcoin’s 36% drawdown from its all-time highs resulted in the relative strength index flashing a potential bottom signal not seen since early 2023.

Bitcoin (BTC) traders expected a short-term bounce as a key BTC price metric sank to its lowest levels in almost three years. Data from Cointelegraph Markets Pro and TradingView revealed extremely “oversold” conditions on the BTC/USD relative strength index (RSI).

Bitcoin’s “most oversold” RSI, historically tied to major BTC price rallies, suggests a price reversal in the short term.

Bitcoin’s network value-to-transaction ratio shows it is undervalued at current levels.

Bitcoin’s 36% drop to $80,500 on Nov. 21 from its all-time high of $126,000 has significantly impacted high-time frame RSI.

Related: Bitcoin rebounds on Japan rate hike as Arthur Hayes sees dollar at 200 yen

On the weekly chart, the RSI fell from local highs of 64 in September to 35 at the time of writing, levels last seen in January 2023 when Bitcoin traded around $15,500-$17,000.

“Historically, when the weekly RSI tags this level, it’s time to pay attention,” said analyst Jelle in an X post on Friday, adding:

RSI measures trend strength and contains three key levels for observers: the 30 oversold boundary, the 50 midpoint and the 70 overbought threshold.

When the price crosses these levels, depending on the direction, traders can make inferences about the future of a given uptrend or downtrend. During bull markets, ETH regularly spends extended periods in overbought territory.

Source: CoinTelegraph