Bitcoin at the time of writing is struggling to hold the $6,600 range since dropping below $7,000. The bears have won this current price war. The Easter break led to a sharp decline to weekly lows of $6,570, the price recovering to highs of $7,176 quickly afterwards. Such a crazy week huh?
Relative Strength Index Debate
Bitcoin on-chain and technical analysts continue to debate the impact of the block reward halving on the bitcoin price, the general cryptocurrency market and the impact of specific on-chain indicators. One of such indicators is the RSI (Relative strength Index) which shows bitcoin has never been this oversold one month before the block reward halving.
The RSI is a technical indicator used in analysing financial markets to indicate the current and historical strength or weakness of an asset. The momentum oscillator uses a scale from 1 to 100 to determine whether Bitcoin is overbought or oversold at a price point.
The 12-month RSI currently registers 49 — near its historic lows. The RSI before Bitcoin’s two previous halvings in 2012 and 2016 was much higher — around 70.
Notes
- The overall Bitcoin and digitalAsset market capitalisation stands at $193billion, this is down 76.84% from its ATH (All Time High) of $835billion.
- Total market volume stands at $111billion which is down 43.8% from its ATH of $197billion.
- Bitcoin dominance currently in the market is 63.40%
