One of the most renowned Bitcoin (BTC) bulls brings a little chunk of hope amid an accelerating bloodbath
Legendary Bitcoin (BTC) researcher and analyst PlanB (@100trillionUSD), author of the BTC valuation “Stock-to-Flow” model and $1,000,000 price prediction, is certain that Bitcoin (BTC) is currently oversold.
Bitcoin (BTC) has never been at $30,000 with such an amazing RSI: PlanB
Mr. PlanB has taken to Twitter to share the motivation of his “hopium” as exhausting cryptocurrency market carnage shows no signs of losing steam.
It’s time for the hopium. We have been in the 30k-60k range for 1.5 years now. But the first time we were at 30,000 (December 2020), BTC was overbought (Weekly RSI ~90). Second time at 30,000 (July 2021), the BTC market was neutral (RSI ~50). Now, at 30,000, BTC is oversold like the fear peak of March 2020 (RSI 34).
He noticed that Bitcoin (BTC), the flagship cryptocurrency, has remained in the $30,000-$60,000 range for more than 18 months. However, Bitcoin (BTC) met the $30,000 threshold with different sentiment by traders.
According to the Relative Strength Index, or RSI – an old technical analysis indicator that shows the “momentum” of a particular price and indicates whether it is “oversold” or “overbought” – Bitcoiners have broken through the level of $30,000 in December 2020, surrounded by bullish euphoria.
In July 2021, Bitcoin (BTC) touched this level with “neutral” RSI while, nowadays, it is in “oversold” territory.
PlanB pointed out that two years ago, the “Black March” was the last time Bitcoin (BTC) was so oversold.
Crypto market capitalization targets yearly lows
As covered by U.Today previously, Bitcoin (BTC) and all of the major altcoins are in the red zone today. The massive selloff was amplified by the U.S. inflation report.
Bitcoin (BTC) briefly slipped below $30,000 while the net crypto market capitalization is below $1.38 trillion. A year ago, on May 10, 2022, this metric posted its all-time high at $2.97 trillion.
However, the Crypto Fear and Greed Index managed to add one point and reached the 12/100 level, still failing to escape the “Extreme Fear” zone.
