Bitcoin RSI Drops Below 30 Indicating Oversold Condition

The 14-day Bitcoin Relative Strength Index (RSI) has fallen below the 30 mark, indicating oversold conditions. Analyst Axel Adler Jr highlighted this trend, emphasizing its significance in technical analysis for assessing price movements.

Key Points

The RSI is a measure of price changes over a set period, with values above 70 indicating overbought conditions and below 30 suggesting oversold status.
The current Bitcoin RSI indicates it is becoming oversold.
Despite bullish signals from the RSI and other metrics, Bitcoin's price has declined recently.
On-chain data shows the average cost basis for short-term holders is $97,100, which is critical for identifying support levels.
Support may also be found at the $95,600 level according to the Spent Supply Distribution model.

Currently, Bitcoin is priced at approximately $101,000, down nearly 5% over the past week.