When the crowd becomes overwhelmingly pessimistic, it could set the stage for a price recovery as it suggests that selling pressure may be nearing exhaustion.
Another key indicator to watch is Bitcoin’s Relative Strength Index (RSI). Currently sitting at a low of just 36, the RSI suggests that Bitcoin is nearing oversold territory.
The RSI is a momentum oscillator that measures the speed and change of price movements. An RSI below 30 is typically considered oversold, indicating a potential buying opportunity. Although Bitcoin has not reached this threshold yet, its proximity to it could mean a bounce is close.
In the short-to-mid term, it might also be essential to keep an eye on macro factors impacting broader market trends. Economic data, regulatory news and global events might influence Bitcoin’s price. At the time of writing, BTC was up 0.18% in the last 24 hours to $60.877.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
