According to Cointelegraph, the recent decline in Bitcoin prices has had a significant impact on market sentiment, especially the sharp changes in the relative strength index (RSI). Bitcoin’s recent decline has caused its hourly RSI to quickly fall to a three-month low of just 16.6, marking the most “oversold” level since Bitcoin hit $60,000. On January 6, RSI fell rapidly from the local high of 81.7 to this point, showing that Bitcoin entered the "oversold" area from "overbought". RSI is often used to measure the strength of a market trend, with a reading below 30 indicating "oversold."
Although the price of Bitcoin hit a new local low on January 8, the trend of RSI deviates from the downward trend of prices, which usually means that a price rebound is coming. Well-known commentator Bitcoin Munger pointed out that the 1-hour RSI has fallen to 16, and the market may see a short-term rebound. Although there are still pessimistic expectations in the market, some analysts expect that the price of Bitcoin may fall back to around $90,000, or even a deeper adjustment, but in the long run, the market may hit a new high after the rebound.
