The , a key long-term bitcoin ( BTC ) price indicator, is reporting oversold conditions for the first time in almost four years.
The widely adopted and followed 14-week ( ), which oscillates between zero to 100, is currently seen at 29.80, a level not seen since January 2015. If you would like guidance and help what these figures mean, our learn to trade blockchain course will be available soon.
Here is a brief description of the . An asset or a cryptocurrency is considered to be oversold if the is below 30.00. On the other hand, being above 70 indicates overbought conditions.
The under 30 indication on the 14-week indicates that the recent heavy selling from the highs above $6,200 may have reached a point of exhaustion. This combined with decreasing selling and all-time high in shorts, may indicate a imitate price reversal.
As a result, BTC may defend the immediate support at the 200 week moving average in the short term. Currently at $3,179.
The BTC has been known to stay oversold or overbought for prolonged periods of times.
BTC’s ongoing bear market is looking resilient and the bears are still in control, as the sell-off is backed by strong volumes.
A strong bounce may not come for some time, despite the oversold readings on the 14-week