Bitcoin's Daily RSI Lowest Since COVID Crash: Does That Confirm The Bottom?

Bitcoin BTC/USD and Ethereum ETH/USD appear to be significantly “oversold” according to technical analysts.

What Happened: Bitcoin’s daily RSI (Relative Strength Index) has hit the lowest level since the “covid crash” of March 2020.

And $ETH weekly RSI even lower than that.

— TechDev (@TechDev_52) January 22, 2022

The Relative Strength Index is typically used by traders to assess the price momentum of a stock or other security. When the RSI readings fall below 30, it implies that the underlying asset is oversold.

Also See: How Far Will Bitcoin Fall? Crypto Analyst Benjamin Cowen Identifies The Bottom

While some market participants suggested that historical price patterns indicate that a more positive uptrend could be around the corner for Bitcoin, others have cautioned against interpreting the sign as a price bottom.

Have been seeing many #bitcoin bottom calls because of an oversold RSI.
Here is the capitulation 2018 daily chart. notice how the RSI is very oversold but continues downward in price as it moves up.
weekly still has room for more fall. be careful folks! pic.twitter.com/U0iCpLmBqC

— Laser Bear ‍ (@LaserBear92) January 22, 2022

“Buying when oversold works in a bull market but not in bear. Same goes for the fear and greed index. We'll be having some boring weeks in crypto until we finally move up,” commented another Twitter user.

Price Action: As of Monday morning, Bitcoin was trading at $33,471.58, down 6.39% in the last 24 hours. Ethereum was trading at $2,212.48, down 11.29% over the same period. The overall crypto market saw a 8.39% decrease in the last day and was valued at $1.5 trillion at press time.

Photo: Courtesy of Marco Verch Professional on Flickr