BTC Price Falls to $34,000 as Bitcoin RSI Hits Most “Oversold” Level Since March 2020 Crash

bitcoin ( BTC ) declined to stem recent losses on Jan. 22 as predictions of a $33,000-and-under robbery looked increasingly likely to com...


bitcoin (BTC) declined to stem recent losses on Jan. 22 as predictions of a $33,000-and-under robbery looked increasingly likely to come true.

BTC/USD 1 hour candle chart (Bitstamp). Source: Trading View.

Open interest “still not emptied”

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it fell to $35,000 in the first half of Saturday.

With few silver linings available for the bulls, the weekend’s lower volume was poised to deliver classic erratic moves after Bitcoin lost $40,000 in support Friday.

While some, including El Salvador, took advantage of the new lower levels, others worried that despite the decline, pressure remained on the bulls.

“The crazy part is that the open interest still hasn’t been flushed,” trader and analyst William Clemente abstract, one of several market participants noting that derivatives traders are still trying to fight the trend.

“After all this carnage and this absolute state of panic, the funding is somehow not giga negative, the drums are not back and the OI is barely down. Interesting times. And with ‘interesting,’ I mean poverty,” the popular Byzantine General Twitter account added. joked.

Bitcoin Futures Funding Rate Chart (Binance). Source: Coinglass.

RSI plunges towards March 2020 COVID lows

A source of mild relief came in the form of Bitcoin’s Relative Strength Index (RSI) on the day, with it dipping to its lowest levels since March 2020.

Related: Here are 3 ways the Relative Strength Index (RSI) can be used as a sell signal

At that time, BTC/USD crashed to $3,600 before staging a comeback that would last into the following year.

The daily RSI stood at just 20 on Saturday, already well below even the classic “oversold” zone.

BTC/USD 1-day candle chart (Bitstamp) with RSI. Source: Trading View.

“Slightly more reliable than Bitcoin alone -> total market cap is at next support level, while daily RSI hits lowest level since March 2020,” said Cointelegraph contributor Michaël van de Poppe commented on the situation.

“Equity sentiment is also at its lowest since March 2020. That says it all.”

Equity markets had taken a hit towards the end of the week, with tech stocks particularly in the firing line and crypto once again showing the extent of its positive correlation.