BlockBeats news, on February 5, according to Tradingview data, as the price of Bitcoin fell below $71,000, Bitcoin triggered a weekly RSI oversold signal for the first time since June 2022, currently at 29.21.
RSI is the abbreviation for Relative Strength Index, one of the most commonly used technical analysis indicators in financial markets such as stocks, futures, foreign exchange, and cryptocurrencies. It was proposed by the American technical analysis master J. Welles Wilder in 1978, mainly used to measure the speed and magnitude of price changes, to determine whether the market is overbought or oversold, thereby helping investors find possible reversal or trend continuation signals. Usually, when the RSI value falls below 30, it enters the oversold zone.
An over-sold signal from RSI does not necessarily mean the price is at an absolute low. In June 2022, Bitcoin once dropped below $18,000, with the RSI value at about 26.2. In November of the same year, Bitcoin fell to $15,600 during the FTX incident, but the RSI value was 31.4, showing a divergence from the June low (i.e., the price hit a new low, but the selling pressure had somewhat eased).