Bitcoin's 14-day Relative Strength Index (RSI) has fallen below 30 for only the third time in its history. The RSI, a momentum indicator, measures the speed and magnitude of recent price changes.
Readings below 30 signal oversold conditions. Historically, such lows have preceded prior cycle bottoms. In January 2015, bitcoin's RSI hit approximately 28 near $200, followed by eight months of consolidation before recovery. A similar pattern occurred in December 2018, with RSI below 30 near $3,500, preceding three months of sideways action.
Currently trading around $66,000, Bitcoin has seen sentiment stuck in fear for much of the past month. Since its October peak, the cryptocurrency has shed over 50%, briefly testing $60,000.
History indicates this current move may lead to consolidation near the $60,000 level in the coming months before resuming its upward trajectory.
