Legendary Bitcoin (BTC) researcher and analyst PlanB (@100trillionUSD), author of the "Stock-to-Flow" model of BTC valuation and $1,000,000 price prediction, is certain that Bitcoin (BTC) is oversold right now.
Bitcoin (BTC) has never been at $30,000 with such an amazing RSI: PlanB
Mr. PlanB has taken to Twitter to share the motivation of his "hopium" as exhausting cryptocurrency market carnage shows no signs of losing steam.
Time for some hopium. We have been in 30k-60k range for 1.5yrs now. But the first time we were at 30k (Dec 2020) BTC was overbought (weekly RSI ~90). Second time at 30k (Jul 2021) BTC market was neutral (RSI ~50). Now at 30k BTC is oversold like peak fear Mar 2020 (RSI 34).
He noticed that Bitcoin (BTC), the flagship cryptocurrency, has remained in the $30,000-$60,000 range for more than 18 months. However, Bitcoin (BTC) met the $30,000 threshold with different sentiment by traders.
According to the relative strength index, or RSI—an old technical analysis indicator that shows the "momentum" for this or that price and displays whether it is "oversold" or "overbought"—Bitcoiners smashed the $30,000 level in December 2020, surrounded by bullish euphoria.
In July 2021, Bitcoin (BTC) touched this level with "neutral" RSI while, nowadays, it is in "oversold" territory.
PlanB stressed that "Black March" two years ago was the last time when Bitcoin (BTC) was so oversold.
Crypto market capitalization targets yearly lows
As covered by U.Today previously, Bitcoin (BTC) and all of the major altcoins are in the red zone today. The massive selloff was amplified by the U.S. inflation report.
Bitcoin (BTC) briefly slipped below $30,000 while net crypto market capitalization is below $1.38 trillion. One year ago, on May 10, 2022, this metric printed its all-time high at $2.97 trillion.
However, the Crypto Fear and Greed Index managed to add one point and reached the 12/100 level, still failing to escape the "Extreme Fear" zone.