Bloomberg experts say that bitcoin is close to the end of the correction, as the relative strength index (RSI) fell to its lowest level (less than 40), at which a trend reversal and return to growth usually occur. According to the agency, the last time the RSI of the cryptocurrency dropped to a minimum in the summer of 2021, when the value of the asset fell to $28,000, writes RBC Crypto.
Bloomberg analysts explained that when the relative strength index drops below 40, the asset becomes extremely oversold and the “bears” lose the ability to influence its rate.
On January 21, the bitcoin rate dropped to a minimum since August 5, 2021, reaching $37.7 thousand. As of 16:00 Moscow time, the first cryptocurrency is trading at $38.1 thousand, over the past day it has fallen in price by 10%. Bitcoin continues to fall in price after hitting an all-time high of $69,000 on November 10. Since then, the price of the cryptocurrency has fallen by 44%.
With bitcoin falling below $40,000, traders lost $725 million as a result of mass liquidations of positions, and the total capitalization of the cryptocurrency market decreased by $157 million.
Stay in touch! Subscribe to World Stock Market in Telegram.