The relative-strength indicator (RSI) of Bitcoin has depreciated to a great extent. The decline in the RSI of the flagship cryptocurrency has reached a level that was last observed during the “Black Thursday” crash that occurred in March 2020. However, according to investment strategist Raoul Pal, Bitcoin will soon bounce back.
Cryptocurrencies are quite volatile, which makes digital currency market trends unpredictable, especially for the beginners and hodlers. On the other hand, people who are experienced traders have more information regarding the exchanges, market trends and other aspects of the cryptocurrency industry. Full-time traders and potential traders often follow leading analysts or investment strategists for information and latest updates. People interested in trading crypto can use ByBit for a safe and secure experience, whereas those who want to opt for copy-trading can use PrimeXBT Covesting.
Analysis of the Bitcoin Market
It has been noted that Bitcoin dropped from $55,000 to nearly $47,250 during the weekend, which is a drop of almost 15%. Global Macro Investor and CEO of Real Vision Group, Raoul Pal, noted the weekly RSI of Bitcoin and stated that the decline of Bitcoin’s RSI can be compared to the corrections that were generated during “the first part of the 2017 bull run, before Bitcoin hit hyperspace.” According to the investment strategist, such corrections in a bull market should not be viewed as threats but as opportunities as Bitcoin is expected to bounce back.
Sharp Bounce Back of Bitcoin Today
Earlier today, Bitcoin was observed to be at a local low of almost $47,000. However, six hours after this information was posted, Bitcoin bounced back to up to 11.5% as was stated by Raoul Pal. Analyst William Clemente III observed the charts shared by Glassnode and shared that there was almost $88,696,765 of Bitcoin short liquidations on Monday morning during the early Asian trading.
Regardless of the bounce observed today, Bitcoin has dropped 27% from its all-time high of $65,000. This has resulted in the dominance of the Bitcoin to drop by 50%, which might be a suitable time for interested parties to purchase the cryptocurrency.
Buying the cryptocurrency at the right time is helpful and important. Therefore, people who are looking to invest in Bitcoin should take a look at the market trends and use SwissBorg or Kraken to buy the cryptocurrency.