Bitcoin monthly RSI lowest since September 2020 in fresh 'oversold' signal
A key Bitcoin (BTC) metric has just reached its lowest levels since the months after the March 2020 market crash.
As noted by popular analysts on Jan. 5, Bitcoin's relative strength index (RSI) is printing a "hidden bullish divergence" on monthly timeframes — and if it plays out, they say, the result will be very pleasing for hodlers.
Amid frustration at the lack of direction on BTC/USD, it is no secret that a host of on-chain indicators has long demanded higher price levels.
The current $46,000 may slide further, but the classic RSI metric now shows just how comparatively "oversold" Bitcoin is at that price.
"Bitcoin monthly RSI is currently lower than the May-July 2021 correction," popular analyst Matthew Hyland revealed, referring to Bitcoin's summer correction after the May miner upheaval.
Whereas that period sent BTC/USD to $30,000 and monthly RSI to around 60, now, the price is higher but RSI lower — just 58.95. The metric was lower only in September 2020, with BTC/USD at around $10,000.
Along with the 1-month lows, monthly RSI is additionally printing a pattern which has only been observed once before, fellow trader and analyst TechDev responded.
"Only been one other hidden monthly bull div in bitcoin's history I could fine. Let's see if it confirms," he wrote.
RSI is traditionally used to determine how overbought or oversold an asset is at a given price point and has served Bitcoin particularly well in recent months.
In mid-October, for example, RSI was at 68, TechDev noted that that level was still far from the point at which Bitcoin hits long-term price tops.
Bitcoin, meanwhile, has not convinced everyone that the future is bright.
Related: Bitcoin open interest matches record high amid predictions of BTC price
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