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Bitcoin whales remain absent despite technical indicators indicating oversold conditions
While bitcoin’s price decline looks to be overdone on technical charts, demand from whales or major crypto investors remains elusive, indicating a low likelihood of a swift trend reversal higher.
The cryptocurrency’s 14-day relative strength index (RSI), a prominent momentum indicator, has fallen below 30, indicating that it has reached lifetime lows and is oversold.
A value of less than 30 on the RSI indicates that the market has fallen too quickly, and bears may now take a respite, leaving the market rangebound. Following the previous oversold reading on May 20, 2021, Bitcoin hovered sideways above $30,000 for many weeks.
“The fact that the daily RSI is at all-time lows does not imply that bitcoin has bottomed out. A decent consolidation phase, in our opinion, is essential to generate confidence for investors to re-enter the markets “Stack Funds’ head of research, Lennard Neo, told CoinDesk through WhatsApp.
The weekly chart RSI is approaching 35, a level that has previously signalled price bottoms, according to Jitesh Tipi, founder and CIO of Mumbai-based crypto asset management business MintingM.
However, the RSI, like other technical indicators, is not dependable as a single indicator and…
