Today is another painful day in Bitcoin (BTC) history. Volatility is of course normal for the cryptocurrency, but such large declines are never pleasant. What do the analysts on Twitter say about these developments? Here are some interesting tweets.
PlanB: Bitcoin Hits Lowest Monthly RSI Ever
Firstly, a tweet from the well-known Dutch analyst PlanB. He shows that BTC is the lowest on the monthly chart relative strength index (RSI) value has ever reached. The RSI is a momentum indicator that traders use, among other things: oversold or overbought trying to determine conditions.
During previous bear markets, bitcoin also reached low RSI values on the monthly chart, but never as low as it is now.
“Lowest Bitcoin Monthly RSI Ever: 43.7”
January 2019 Bottom, BTC $3400: RSI 43.9
January 2015 Bottom: BTC $210: RSI 44.6
And what a blue: we are 60% below the monthly ATH.”
Worst bitcoin monthly RSI ever: 43.7
Bottom Jan 2019, BTC $3400: RSI 43.9
Bottom Jan 2015, BTC $210: RSI 44.6
And some blue: we are 60% below monthly ATH pic.twitter.com/ZlsEmV06b9— PlanB (@100trillionUSD) June 13, 2022
Bitcoin is approaching the oh-so-important 200-week MA
Many analysts also keep the 200 weeks moving average (MA) watch closely. This is the moving average of the past 200 weeks. Bitcoin has come close to this in the past, but has almost always remained above it for the time being. In this way, it formed a solid foundation in 2019 and 2020.
“Close to testing support at the 200 week MA for bitcoin at 22k!”
Getting close to testing support at the 200 week moving average for #bitcoin at 22k!
— Lark Davis (@TheCryptoLark) June 13, 2022
Smaller wallets buy bitcoins more aggressively
Finally what on chain dates. Checkmate, an on-chain analyst, noticed that so-called shrimp addresses, which are smaller bitcoin holders, increasingly aggressively during the recent sell-offs. Whether this can provide a nice bounce in the long run remains to be seen. “Price is lower, fundamentals unchanged,” said the analyst.
rightly, or wrongly, #Bitcoin Shrimp stack sats in increasingly aggressive tranches with every sell-off
I have a handful of UTXOs contributing to the additional 0.451% of circulating supply now held by the little guy
h/t @UkuriaOC
PriceLower.
Fundamentally unchanged.#Unfazed pic.twitter.com/NR9NOGWjVO— _Checkɱate 🔑⚡🦬🌋 (@_Checkmatey_) June 13, 2022
Be well prepared: learn about Bitcoin now
We have experienced sharp declines in the past, and whether we will get a bounce again only time will tell. Nevertheless, this might be a good time to learn about what bitcoin is and what you can do with it. As a Crypto Insider Premium member you will also receive daily interesting price updates from our analysts within our clear Discord server†
