Bitcoin RSI Dips Below 30—Is A New All-Time High Next?
The 14-day Bitcoin Relative Strength Index (RSI) has fallen below the 30 mark, indicating that Bitcoin is oversold. The RSI is a technical analysis tool used to identify overbought or oversold conditions. A reading above 70 suggests potential price corrections, while below 30 indicates underbought conditions. Despite the oversold signal, Bitcoin's price has declined recently. On-chain data from Glassnode reveals that the average cost basis for short-term holders (STHs), who bought Bitcoin in the last 155 days, is $97,100. This level is significant as it often acts as support or resistance. Additional key levels include the -1 standard deviation band at $83,200 and the 0.85 quantile at $95,600, which is close to the STH cost basis. Currently, Bitcoin's price is approximately $101,000, reflecting a nearly 5% decrease over the past week.
