BITCOIN’S RELATIVE STRENGTH INDEX WEAK

Updated: 04/13/2020 05:35
Hyip Monitor
bitcoins rsi has never been this weak before a halving
Bitcoin’s Relative Strength Index is currently sitting at levels never before seen preceding its halving. It’s unclear yet whether this might be a
Sponsored Links
Bitcoin’s Relative Strength Index is currently sitting at levels never before seen preceding its halving. It’s unclear yet whether this might be a positive or negative forecast of what to expect next month.

Relative strength index (RSI) is a common trading indicator that measures whether an asset is overbought or oversold. Commonly used in technical analysis, RSI is just one tool traders use to assess whether we’re close to a bottom or top.

For the time being, Bitcoin’s RSI is at historically low levels — meaning it’s exceptionally oversold before its next halving in May.


Bitcoin’s RSI Falls Before Halving

The ongoing macroeconomic outlook has seemed to overshadow the cryptocurrency markets despite the biggest event in the industry happening in May — Bitcoin’s next halving.

Historically, halving events are preceded by an uptick in buying activity. However, RSI seems to be dropping this time around unlike ever before.

Typically, this chart would seem to indicate that Bitcoin is very near to a local bottom. However, the uncertain macroeconomic situation makes this prediction less unclear.

 Bitcoin’s Relative Strength Index


Uncertain Times

All we have to judge the upcoming Bitcoin halving is its history. However, we are living in an extraordinary period, so it is much harder to judge.

The IMF now expects almost all national economies to contract in 2020. Moreover, the World Trade Organization is predicting that global trade could drop as much as 32% this year. Increasing jobless claims also make the macroeconomic situation especially severe.

Bitcoin has frankly never experienced a recession. Yet, Bitcoin halvings have also correlated strongly with bull markets afterward. So, the jury is still out on what to expect. It’s hard to draw conclusions given that the macroeconomic situation is so unreliable at the moment.

For now, Bitcoin seems to correlate strongly with the S&P 500 and mainstream financial markets. Therefore, predictions for the future have less to do with Bitcoin and more to do with the greater economy. Considering the world economy remains in serious jeopardy, traders should be especially cautious of drawing bullish conclusions on historical trends alone.

Source: https://beincrypto.com/bitcoins-rsi-has-never-been-this-weak-before-a-halving/


About the author

Lella Prior has been at HYIPNews for five years. She is an articulate, confident person who relishes challenges and working under pressure. Lella Prior has been taking much care about writing. The greatest strengths are the research, communication and writing skills Lella has. Thanks to the work at HYIPNews Lella Prior has an excellent opportunity to write good quality content.
You May Also Like