The 14-day RSI for Bitcoin has touched the 20 level, indicating that the price is oversold.
Bitcoin is trading at $26,045 as per data from CMC and is down 11.33% in the last 7 days.
The crypto market has faced severe selling pressure for the last few days. The price of Bitcoin declined all the way to the $25,000 range. At the time of writing the price has been trading in a confined range. During the severe crash, the majority of altcoins have also lost remarkably, reaching record lows.
Moreover, Santiment reports an 8.49% decrease in the 30-day moving average of Bitcoin’s market value over realized value (MVRV). This indicates that the asset’s current price is below its true worth. Furthermore, long-term active BTC investors are still in the green, since the 365-day MVRV ratio is now over 5%.
Price Struggles to Gain Momentum
The 14-day RSI on a daily time frame for Bitcoin has touched the level of 20, indicating that the price is oversold. This drop brings the present range to its lowest level since the collapse in March 2020.
Usually, if the RSI reading drops below 30 or crosses into the oversold territory, it indicates that selling pressure is increasing. Investors may be surprised to see the indicator usually stay in the oversold zone for far longer than they had expected.
The price has been consolidating ever since it briefly recovered from the $25,411 mark. For the price to gain strong momentum, it needs to cross the $26,870 mark. On the other hand, further decline can be expected if the price breaches the recent support level of $25,710. At the time of writing Bitcoin is trading at $26,045 as per data from CMC and is down 11.33% in the last 7 days. Moreover, the trading volume is up 15% in the last 24 hours.