 ▲ Bitcoin (BTC) © Coin Leaders |
Crypto analyst and trader Ali Martinez claims that Bitcoin (BTC) is currently oversold, which is a strong buy signal.
Martinez told his 65,300 followers on social media platform
He emphasized that over the past two years, whenever the Relative Strength Index (RSI) indicator entered 'oversold territory' on the daily chart, Bitcoin rose by at least 60%.
According to Martinez, in August 2023, Bitcoin's daily RSI surged nearly 200% from around $25,000 to an all-time high of $73,000 after hitting oversold levels.
Additionally, Martinez explained that Bitcoin's Market Value to Realized Value (MVRV) indicator also indicates that Bitcoin is currently undervalued, and that whenever this indicator falls to a negative number, the price of Bitcoin rises significantly.
Martinez argued that Bitcoin is currently trading below $62,000 and that now could be a good time to buy the dip as the RSI has entered oversold conditions again.
He also added that with Bitcoin's MVRV rate falling to -8.96%, Bitcoin has the potential to rise significantly.
Matrixport, a cryptocurrency service provider, also diagnosed through Official
Matrixport said, “The current 21-day average RSI of BTC is the lowest since the Chinese real estate recession in August last year, and at that time, BTC was trading at $25,000. Historically, after falling to the oversold range, Bitcoin has a certain level of rebound followed by a certain level of recovery. “There is a tendency,” he said.
However, Markus Thielen, founder of cryptocurrency market analysis company 10X Research, said, "BTC is currently severely oversold. The reasons include Mt. Gox's bond repayment scheduled for July, the German government's sale of BTC confiscations, miners' sale, “In addition, there are macro factors that can have a greater impact on the market, such as spot ETF net outflows, so there may be a more severe decline before a rebound,” he pointed out.
According to Daily Issues, RSI is a momentum oscillator used to determine whether an asset is oversold or overbought. The value of RSI ranges from 0 to 100, with 70 to 100 indicating overbought and 0 to 30 oversold. MVRV also compares Bitcoin's current market capitalization to its realized market capitalization (calculated based on the price at which Bitcoin was purchased). If the MVRV value falls below 0, it indicates an oversold condition.
According to CoinMarketCap, as of 7:27 am on the 27th (Korean time), 1 Bitcoin is trading at $60,791, down 1.86% from 24 hours ago.
