BTC price falls to $34K as Bitcoin RSI reaches most ‘oversold’ since March 2020 crash

Share This Post

It’s looking more and more like a capitulation, but so far, open interest remains “unflushed,” analysts warn.

Bitcoin (BTC) refused to stem recent losses during Jan. 22 as predictions of a flight to $33,000 and lower looked increasingly likely to become a reality.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView.

Open interest “still not flushed”

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it fell through $35,000 during the first half of Saturday.

With few silver linings available for the bulls, lower weekend volume was poised to deliver some classic erratic moves after Bitcoin lost $40,000 support on Friday.

While some, including El Salvador, made the most of the new lower levels, others voiced concern that despite the drop, pressure still remained on bulls.

“Crazy part is open interest still hasn’t flushed,” trader and analyst William Clemente summarized, one of many market participants noting that derivatives traders are still attempting to fight the trend.

“After all this carnage and absolute state of panic funding somehow isn’t giga negative, futs aren’t backwarded and OI barely went down. Interesting times. And with ‘interesting’ I mean poverty,” popular Twitter account Byzantine General additionally quipped.

Bitcoin futures funding rates chart (Binance). Source: Coinglass.

RSI sinks towards March 2020 COVID lows

A source of slight relief came in the form of Bitcoin’s relative strength index (RSI) on the day, this dipping to its lowest levels since March 2020.

Related: Here’s 3 ways the relative strength index (RSI) can be used as a sell signal

At that time, BTC/USD crashed to $3,600 before staging a comeback that would last well into the following year.

Daily RSI stood at just 20 Saturday, already well below even the classic “oversold” zone.

BTC/USD 1-day candle chart (Bitstamp) with RSI. Source: TradingView.

“A bit more reliable than Bitcoin alone -> total market capitalization is at next level of support, while the daily RSI hits the lowest level since March 2020,” Cointelegraph contributor Michaël van de Poppe commented on the situation.

“Equities sentiment is also on the lowest level since March 2020. Says it all.”

Equities markets had taken a hit towards the end of the week, with tech stocks particularly in the line of fire and crypto once again showing the extent of its positive correlation.

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Binance Bitcoin Reserves Up 25%, Holding 40% of Global Market Share

The post Binance Bitcoin Reserves Up 25%, Holding 40% of Global Market Share appeared first on Coinpedia Fintech News Despite persistent fear, uncertainty, and doubt (FUD), Binance’s customer

India’s RBI Boosts Cross-Border Payments Platform with CBDC Integration

The post India’s RBI Boosts Cross-Border Payments Platform with CBDC Integration appeared first on Coinpedia Fintech News The Reserve Bank of India (RBI) is enhancing its cross-border payments

XRP Price Prediction For November 25

The post XRP Price Prediction For November 25 appeared first on Coinpedia Fintech News Ripple’s XRP is currently down by more than five percent and is trading near the $140 levels Majority of the

WBTC Flash Crash on Binance, Price Plunges to $5,200

The post WBTC Flash Crash on Binance, Price Plunges to $5,200 appeared first on Coinpedia Fintech News On November 23, 2024, Wrapped Bitcoin (WBTC) experienced a sudden flash crash on Binance,

Metaplanet Stock Soars After Securing Bitcoin Magazine Japan for Bitcoin Adoption

The post Metaplanet Stock Soars After Securing Bitcoin Magazine Japan for Bitcoin Adoption appeared first on Coinpedia Fintech News After signing a memorandum of understanding (MoU) with Bitcoin

Ethereum Price Poised for Gains: $3,600 Within Reach?

Ethereum price started a fresh increase above the $3,320 zone ETH is rising and aiming for more gains above the $3,500 resistance Ethereum started a fresh increase above the $3,300 and $3,320 levels