Bitcoin slides to $ 34,000, RSI to its lowest level since March 2020

The price of Bitcoin (BTC) shows no signs of recovery: forecasts of a move towards $ 33,000 – or even lower – are increasingly becoming a reality.

BTC / USD, hourly candles (Bitstamp). Source: TradingView

Open interest remains high

The data says Cointelegraph Markets Pro e TradingView they followed BTC / USD as it slid below $ 35,000.

Little consolation in this market for bullish traders. Among the positive news we find the purchase of additional BTC by El Salvador, which used the correction to replenish its coffers.

The absurd thing is that open interest continues to remain high,he has declared trader and analyst William Clemente, one of the many market participants who highlighted how derivatives traders are still trying to counter the trend.

Despite the carnage and the state of panic, I would say that the situation is not that bad. Futures are not yet in backwardation, OI has barely decreased. Interesting times. And by ‘interesting’ I mean poverty,” he has jokingly commented l’account Byzantine General su Twitter.

Funding rate dei future su Bitcoin (Binance). Fonte: Coinglass
Funding rate dei future su Bitcoin (Binance). Fonte: Coinglass

RSI reaches March 2020 levels

Another possible source of relief for bulls comes from Bitcoin’s Relative Strength Index (RSI), which hit its lowest levels since March 2020, when fear of COVID-19 first spread around the world. .

At that time, BTC / USD plummeted to $ 3,600, then staged a recovery that would last until the following year. The daily RSI currently stands at a value of 20, well below of what is traditionally considered “oversold.”

BTC / USD, one-day candles (Bitstamp) with RSI.  Source: TradingView.
BTC / USD, one-day candles (Bitstamp) with RSI. Source: TradingView

A more reliable figure than Bitcoin alone is the overall market capitalization, currently at the next support level. Meanwhile, the daily RSI has reached its lowest level since March 2020,he has declared Michaël van de Poppe, Cointelegraph trader and contributor.

“Equity sentiment is also at its lowest level since March 2020. That speaks volumes.”

Equity markets also took a hit over the weekend, especially tech-related stocks.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.