Bitcoin (BTC) Weekly RSI Hits June 2022 Lows as Sell-Off Deepens

Bitcoin (BTC) has set foot in a significant technical phase after its weekly Relative Strength Index (RSI) plunged to levels last seen in June 2022. The move happened after an intense market sell-off that had escalated downside pressure across the larger cryptocurrency market, drawing notice to conventional comparisons and momentum indicators.

According to CoinMarketCap, at the time of writing, the coin is trading at $69,915.06 with a 5.9% increase in rate. The market cap of the asset has exceeded $1.39 trillion, and the token’s volume is around $138.77 billion.

Source: CoinMarketCap

Also Read: Bitcoin (BTC) Pumps to $66,845 Amidst Bearish Trend

Weekly RSI Reaches Multi-Year Low for Bitcoin

The weekly RSI, a momentum indicator used to measure overbought or oversold circumstances of the token, has fallen to the same zone observed during BTC’s June 2022 downturn.

At that time, BTC was going through extended bearish conditions following a larger risk-off ecosystem in global markets. The current reading makes BTC strongly oversold on a higher-timeframe basis, reflecting constant selling pressure rather than short-term volatility.

The token’s latest decline indicates over a single trading session, distinct by elevated selling volume. Values sank sharply from the latest consolidation levels, breaking below many short-term support zones. 

Market data indicate that the action clashed with increased liquidations in leveraged positions, especially in derivatives markets, resulting in the speed and magnitude of the decline.

Despite the severity of the action, price movement has so far balanced above major long-term support areas established initially in the cycle. This proposes that while selling pressure has been strong, larger systematic support has not yet been fully ruptured.

On-chain movement has remained relatively firm, proposing that long-term holders have not crucially increased distribution during the recent downturn. This divergence between price weakness and steady network activity continues to be closely observed by analysts.

BTC’s weekly RSI reaching June 2022 levels underscores the depth of the current correction, but conventional precedent indicates that further consolidation or volatility may still occur.

Traders and investors are now observing key support levels, volume trends, and momentum indicators to analyze whether selling pressure begins to ease or extends further in the coming weeks.

Also Read: Strategy to Launch Bitcoin Security Program for Quantum Risks