Bitcoin’s weekly Relative Strength Index (RSI) has slipped to its lowest point since the $15,000 mark, a stark indicator that the digital currency may be approaching a technical bottom. The drop comes after a 36% decline from all‑time highs, leaving traders in a state of extreme fear as the Fear & Greed Index sits at 16.

What Happened

The RSI, a momentum oscillator that ranges from 0 to 100, fell below 30 – the conventional oversold threshold – on Monday, echoing a similar signal that appeared in early 2023. The move follows a steep 36% slide from Bitcoin’s peak of $68,000, bringing the price closer to the $15,000 floor.

Why It Matters for Bitcoin

  • Oversold RSI levels often precede a rebound, but they can also signal a prolonged decline if the market’s sentiment remains negative.
  • A low RSI coupled with a Fear & Greed Index of 16 suggests widespread pessimism, increasing the risk of a further sell‑off.
  • Investors should monitor volume and on‑chain metrics; a surge in buying activity can confirm a bottom.

U.S. Angle

In the United States, Bitcoin’s trajectory is now being watched through a regulatory lens. The Securities and Exchange Commission (SEC) has yet to approve a spot Bitcoin exchange‑traded fund (ETF), a development that could provide a more stable entry point for institutional money. Meanwhile, the Federal Reserve’s policy stance and upcoming CPI releases could influence risk appetite, potentially accelerating a market rally or deepening the downturn.

What to Watch Next

  • SEC filings on spot‑ETF applications.
  • Fed minutes and CPI data for any shift in monetary policy expectations.
  • Bitcoin’s on‑chain metrics such as active addresses and hash rate.

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Source

Cointelegraph