Current price volatility is a stress test even for diehard bitcoiners. Because for the first time in its history, BTC undercut an all-time high set in the previous cycle, only to burst again a few hours later. What does it tell us about cryptocurrency.
Facts first: At $ 17,760 on Saturday, June 18, BTC hit an as-is low, falling well below the “psychologically important” (warning, trope) mark of $ 20,000. This sign is psychologically important not only because it is so well rounded, but also because in past bear markets BTC has stopped at the all-time high of the old cycle at the latest. So there are already those who speak of a (note) “turning point over time”.
To make sense of things, a sober analysis is usually worth doing. Is Bitcoin Dead? Sure enough not.
RSI: Bitcoin is oversold
Because a look at the RSI, the Relative Strength Index, reveals that Bitcoin is currently oversold like never before. In other words, the current price level is dream territory for falling buyers.
Furthermore, the RSI shows that the sell-off in the cryptocurrency market is severe even by BTC standards. At 39.6, BTC is the “weakest” (measured by the indicator) it has ever been in its history.
Mayer Multiple: bottom out in sight?
But the RSI is not the only indicator showing an undervaluation. The Mayer Multiple is also aiming to hit rock bottom. At 0.48, the indicator is the lowest in the past seven years.
The Mayer multiple is obtained by dividing the current price by the 200-day moving average.
Bitcoin miners buy the dip
And if that’s not enough, a look at the behavior of the miners can also help. After all, the backbone of the Bitcoin network is made up of absolute professionals who ensure the security of the system with a lot of capital investment. Instead of reducing their positions, miners are in accumulation mode these days.
According to data from Glass knotminers keep most of their mined coins and then expand their position in BTC.
Ultimately, it also helps to focus on Bitcoin’s core promises. Am I investing in BTC because I want to maximize my fiat profits or do I believe in the long-term success of the cryptocurrency?
Nothing has changed in the basic idea of bitcoin. The blockchain works like a clock and produces a new block every ten minutes. And as for the course: in 683 days there will be another halving.
Disclaimer: Item content does not constitute a buy or sell recommendation and is for informational purposes only.
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