Bitcoin (BTC), the world's largest digital currency, has been acting more like an underdog for the better part of the week. CoinMarketCap's data shows the cryptocurrency is changing hands at $22,701.48, down by 4.12% in the trailing seven-day period.
While the bears seem to be having a great time, crypto analyst The Wolf of All Streets has flagged a very rare trend on Bitcoin's Relative Strength Index (RSI). Drawing on a four-hour chart of BTC, the analysts revealed that the "RSI has managed to go from massively overbought to almost oversold..."
While this can be tagged as a usual trend, the analysts pointed out that this event happened "without price changing at all." In explaining the occurrence, he posited that such a strange occurrence is a sign of bullishness, adding that Bitcoin "bears are in trouble."
$BTC 4-HOUR— The Wolf Of All Streets (@scottmelker) February 9, 2023
RSI has managed to go from massively overbought to almost oversold without price changing at all.
Quite a feat and generally considered a sign of bullishness.
When indicators reset without a price drop, bears are in trouble. pic.twitter.com/ETKbA4yyVr
In regular technical parlance, an RSI with a mark of 70 and above shows that more of a particular digital currency has been excessively sold, thus, a bearish reversal is imminent. At the 30 mark, the reverse holds true. Now that Bitcoin's RSI is at 39, according to the chart embedded in the tweet, we can start seeing renewed BTC accumulation.
All eyes on Bitcoin
Bitcoin is not just the biggest digital currency by market capitalization, but it also wields a dominant sway over all other digital currencies. With new Fear, Uncertainty and Doubt (FUD) now creeping into the ecosystem, all eyes are now fixed on the direction of the premier cryptocurrency.
Bitcoin (BTC) has been recording impressive price action since the start of the year. The coin is up by more than 32% in the year-to-date period, a growth rate that has helped it pare its losses year-over-year. This price action has provided guidance for the massively bullish performance of top altcoins in the space.