The cryptocurrency markets have been in freefall over the last week, and Bitcoin (BTC) has dropped to price levels not seen since December of 2020.
Bitcoin reaches lowest RSI level, ever!
One popular chart indicator of overbought and oversold assets, the Relative Strength Index (RSI) shows that Bitcoin is currently at its lowest level (oversold level) of all time. Plan B, who is a popular crypto price analyst famous for his stock-to-flow ratio, also tweeted pointing out the RSI level reaching its lowest point ever.
Bitcoin falls below its ‘Realized Price’
According to Bitcoin’s historical data, the market has now reached a valuation that show the price is severely oversold and perhaps near a bottom. Bitcoin has now fallen below its realized price, which represents the average price of every coin in supply based on the time it was last spent on-chain.
Is it time to buy the Bitcoin dip?
There is data and metrics to suggest that maybe we are close to or have already reached a bottom for the price of Bitcoin. Mentioned above the RSI levels are at an all time low, the fear and greed index is in extreme fear level and Bitcoin is now touching its 200 weekly moving average.
The 200 weekly moving average has usually acted as a bottom for Bitcoin throughout the history of the Blockchain. There were a few occasion were Bitcoin briefly dropped below this line, however it quickly recovered in each case.
In addition to chart metrics, shrimp wallets which are BTC wallets that hold less than 1 BTC as well as whale wallets with more than 10,000 BTC have been in accumulation mode since the old Terra (LUNA) fell apart in early May. As per data from blockchain intelligence website Glassnode, shrimp wallets “have seen a net balance growth of +20,863 since the May 9th Luna crash,” and a total increase of 96,300 BTC since November’s all-time high (ATH). Whale wallets have also been accumulating and have added over 305K BTC since the all time highs late last year.