The daily Bitcoin RSI has been this low once before

in bitcoin •  4 months ago

The bitcoin price yesterday found some volatility long missed as we broke yearly lows and out of many triangles many TA bitcoin guys had drawn.

The RSI went below 18 something that had never happened before, or so I thought.

rsi_18.JPG

Actually, an RSI below 18 happened once before in the last big bear market that lasted from January 2014 to the summer of 2015.

rsi_long.JPG

This happened Sept 19 2014. The price of Bitcoin was around $400.

What happened afterwards

Bitcoin went down over 50%. The lowest price recorded on bitstamp was around $150.
RSI sept 14.jpg

But it basically found a bottom above 200 after rebounding from that capitulation.

bottom.JPG

So basically we dropped another 50% of the price before finding our bottom. If this repeats we should see bitcoin around 3000 this time around.

This is not statistically relevant

This only happened once before, so I doubt it makes sense to draw conclusions from this. What we do know is that the price can go lower even if we are oversold this much. But let's not be surprised if it does happen again.

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3000 is I think, a very strong level, as it has acted as resistance/support during the bull run.

This post has receive a 25.00% upvote.

This post has received a 15.00% upvote from @teevmoore!

I am wondering what will be the price of steem, if BTC goes to 3k level. May be a very good time coming to buy steem !!

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prolly $0.2

What's your personal feeling about where BTC is going next?

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$1-3k is most likely outcome imho, but others are possible as well, such as 5k, 4k

People are saying Bitcoin dumped because they bought Bitcoin Cash for free coins. But I don't see any high growth of bitcoin cash..