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Bitcoin (BTC), the world’s largest digital currency, has been acting more like an underdog for most of the week. CoinMarketCap data shows the cryptocurrency changing hands at $22,701.48, down 4.12% over the past seven days.
While the bears seem to be having a blast, crypto analyst The Wolf of All Streets has spotted a very rare trend in Bitcoin’s Relative Strength Index (RSI). Using a four-hour chart of BTC, analysts revealed that “the RSI managed to go from massively overbought to almost oversold…”
While this can be described as a usual trend, the analysts pointed out that this event took place “without any price change”. Explaining the incident, he posited that such a strange occurrence is a sign of bullishness, adding that Bitcoin “bears are in trouble.”
In normal technical parlance, an RSI with a level of 70 and above shows that more of a particular digital currency has been oversold, so a bearish reversal is imminent. The reverse is true at the 30 mark. Now that Bitcoin’s RSI is at 39, we can see renewed BTC accumulation according to the chart embedded in the tweet.
All eyes on Bitcoin
Bitcoin is not only the largest digital currency by market cap, but also exerts a dominant influence over all other digital currencies. With new Fears, Uncertainties and Doubts (FUD) creeping into the ecosystem, all eyes are now on the direction of the leading cryptocurrency.
Bitcoin (BTC) has seen impressive price action since the beginning of the year. The coin is up more than 32% year-to-date, a growth rate that has helped it erase its year-over-year losses. This price action has provided some guidance for the massively bullish performance of the top altcoins in the space.
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