Aug 22, 2023

Bitcoin's (BTC) 14-day relative strength index (RSI) has dropped well below 30, indicating oversold conditions in the largest cryptocurrency by market cap. This is the lowest the indicator has dropped to since the coronavirus-induced crash of March 2020.

Video transcript

The chart of the day is brought to you by crypto dot com. The world's fastest growing crypto app. Let's take a look at the chart of the day. Bitcoin's 14 day relative strength index has dropped well below 30 looking the most oversold since the COVID driven crash of March 2020. The relative strength index is a momentum indicator that shows the assets recent price movement relative to its average price movement over a specific period of time. It's suggesting extreme oversold conditions in Bitcoin as surging bond yields way over risk assets which include cryptocurrencies. A reading under 30 implies that the price dropped too quickly relative to its recent average and that's all it means a common mistake would be to consider the reading to be a signal of an impending bullish or bearish reversal. Bitcoin is currently holding steady around $26,000. That's it for today's chart of the day. I'm Jen Senai. We'll see you next time to unpack more of the data behind top news stories.

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