Bitcoin's Relative Strength Index, in Italian Relative Strength Index, is currently positioned at levels never seen before halving. It is not yet clear whether this can be considered a positive or negative forecast regarding market dynamics over the next month.
What is RSI?
Bitcoin's Relative Strength Index (RSI) is a trading indicator that measures whether an asset is overbought or oversold. Technical analysts use the RSI to assess whether the price of the cryptocurrency is close to the minimum or maximum. At the moment, Bitcoin's RSI is at historically low levels, just a few weeks after the expected halving of the cryptocurrency.
Will Bitcoin face halving with a bearish trend?
During previous bitcoin halving events, the Relative Strength Index had always shown an increase in purchasing activities. However, this time the bitcoin RSI is at historically low levels, indicating that the main cryptocurrency is exceptionally oversold before its next halving of the reward, which is slated for May 2020.
On Twitter, currently, reports of this new configuration of facts are multiplying, in the phase preceding a halving.
Typically, the drop in the RSI indicates that Bitcoin is very close to a local fund, but the uncertain macroeconomic situation makes this forecast less clear due to the looming global economic crisis generated by the spread of the pandemic.
Bitcoin is still coupled with traditional markets
Right now, the leading cryptocurrency is trading at just over $ 6,700, down 1,3% in the past 24 hours. In a time of uncertainty, bitcoin has shown a stronger correlation with stock markets rather than with safe haven assets like gold.
The leading cryptocurrency appears to be strongly correlated with the S&P 500 and traditional financial markets. Financial markets around the world are plummeting due to the coronavirus outbreak and most countries continue to get stuck.
Over 1.800.000 people have been diagnosed with COVID 19 and more than 114.000 people have died from this virus. As a result of this, the short-term forecast for bitcoin is still quite bearish.
Earlier, the CEO of BitMEX cryptocurrency exchange Arthur Hayes predicted that bitcoin could repeat the performance of the minimum peak at $ 3.000 in the coming weeks, as the financial markets would seem ready for a new collapse.
In public discussions that take place mainly on Twitter, within the crypto community, there is a great movement of new predictions and theories. Even veteran trader Peter Brandt tweeted a bearish chart when Bitcoin's price broke the $ 7,200 security threshold again, but later deleted the tweet.
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