Bitcoin Weekly RSI At Rare Oversold Level

Bitcoin’s weekly RSI opened at 27.4 on Monday – one of its “most oversold” levels ever. That doesn’t guarantee the bottom is in, but it does mean sellers are overstretched.

What the bitcoin weekly RSI is saying

The RSI (relative strength index) uses maths to calculate which is stronger – buying pressure or selling pressure. The lower it goes, the stronger the selling pressure, and the more oversold the investment. You can learn more about the RSI here.

Bitcoin’s weekly RSI bases its value on how bitcoin moves week to week. This way, it cuts out short-term price moves to focus on the bigger picture. 

And that picture looks pretty bleak for bitcoin right now. The RSI reached 27.4, meaning selling pressure is extremely strong compared to buying pressure. 

The takeaway for investors 

Just because the RSI is low, doesn’t mean the price can’t go lower in the short term. In June 2022, for example, the weekly RSI reached 25.7 when bitcoin was around $19,000. Yet bitcoin only bottomed that November at $15,500. 

But buying bitcoin when the RSI is extremely oversold has turned out very well for long-term investors.

As the chart shows, patience has rewarded the brave.

As usual, none of this is investment advice. To learn how to use the RSI in your investment strategy, check out our RSI explained guide.