The steady decline in the price of bitcoin forced his RSI to a four-year low. According to Rob Sluymer, technical analyst at Fundstrat Global Advisors, the weekly relative strength index, or RSI, a measure of the magnitude of price changes, for the first time since January 2015 was below 30.
RSI is measured on a scale from 0 to 100, despite the fact that when the indicator is below 30, the asset is considered oversold, and when above 70 – overbought.
“BTC is again at a historically oversold level and is re-testing important support that needs to be held in order to be able to assume that the bottom is being built ,” Sluimer wrote in a research note for clients.
And, though, the decline of 2015 in the oversold area marked the minimum of the cryptocurrency cycle, in the best part of 2015, a move up has begun, which suggests that now Bitcoin-enthusiasts are not yet in the game.
"A break below the Q4 BTC lows around $ 3,100 will mark a decline to $ 2,270, despite the fact that a move above $ 4,200 is necessary to give a signal that the BTC is starting to grow," he wrote.
Bitcoin has not closed above $ 4,200 since November 2018. But some are more optimistic, believing that the so-called “crypto-winter” is nearing its end. A recent survey of market participants by Finder.com showed that the projected average price of Bitcoin at the end of 2019 will be $ 6549, this level has not been observed since October of the past year.
“Since he is not going anywhere, as development continues, his stability at some point will contribute to positive growth ,” said Joe Raczynski, a blockchain consultant from Washington, whose goal at year-end is $ 8,000.
However, for those who look at graphics, the prospects remain bleak. Cryptocurrency set a record in January, registering seven unprofitable months in a row.
"The scenario of successful retesting of Q4 2018 minima, which marks the double bottom model, remains possible, but the price structure for most cryptocurrencies remains weak and seems vulnerable to the expected breakdown to lower lows ," writes Sluimer.
Publication date 17.02.2019
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