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Bitcoin (BTC) Remains Heavily Oversold in 2022: Indicator

Wed, 10/12/2022 - 14:09
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Vladislav Sopov
Here's what Stochastic RSI (STOCH RSI), one of most reliable technical analysis indicators, tells us about BTC price prospects
Bitcoin (BTC) Remains Heavily Oversold in 2022: Indicator
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Stochastic Relative Strength Index (Stoch RSI), a major momentum indicator, says that Bitcoin (BTC) might be nowhere near its price bottom, should history repeat itself.

Stochastic RSI: BTC remains oversold for entire 2022

As of mid-October 2022, Stochastic RSI for the Bitcoin (BTC) price remains in the "oversold" zone. Stoch RSI is sitting below 20/100 for ten months in a row — since January, 2022.

Stoch RSI: BTC oversold in 2022
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The previous longest "oversold" periods were April 2014-September 2015 and April 2018-April 2019. It means that bearish recession for the first cryptocurrency is very far from being over.

However, periods of "oversold" Stoch RSI unlock amazing buying opportunities for long-term investors.

Stochastic Relative Strength Index, or Stoch RSI, is calculated by applying the Stochastic oscillator formula to a set of relative strength index (RSI) values registered over this or that period.

"Fear and Greed" index drops to 20 as BTC slips below $19,000

Just like "regular" RSI, this indicator is used to check whether the market is controlled by bulls or bears. Stoch RSI above 80/100 means that the asset is overbought; when the indicator plummets below 20/100, traders say that it is oversold.

Meanwhile, yesterday, Bitcoin (BTC) briefly dipped below $19,000 for the first time in a week. Following this drop, the Fear and Greed Index by Alternative also plunged to 20, which is the lowest level since mid-July.

The indicator has not been able to leave the "Extreme Fear Zone" for over two months in a row.

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About the author

Blockchain Analyst & Writer with scientific background. 6+ years in IT-analytics, 3+ years in blockchain.

Worked in independent analysis as well as in start-ups (, Monoreto, Attic Lab etc.)