Bitcoin’s velocity RSI has recently indicated a rare signal pointing to a potential bear market bottom at $87,000. This signal comes alongside significant price drop and market movement.
Key Points:
- The velocity RSI metric indicates a return to levels consistent with previous bear market lows.
- Analysts suggest that Bitcoin may be undergoing a “major cyclical reset.”
- The traditional long/short ratio in the crypto market shows unusual trends as Bitcoin’s price falls.
Current Situation and Analysis
In a recent X post, analyst On-Chain Mind highlighted strikingly low readings on Bitcoin’s velocity RSI, a key indicator for assessing market momentum.
“The Velocity RSI on the 3-day chart has just hit its lowest reading since the bottoms of the last 3 bear markets.”
This analysis points toward a significant price floor being established, as seen in historical bear markets, including those in 2018 and early 2022.
The long/short ratio has also experienced drastic changes, as noted by Joao Wedson, signaling potential pitfalls for investors if they rush into trades while the market remains volatile.
“For the first time ever, BTC kept this ratio at extremely elevated levels for an unusually long period—yet we saw false bottom signals while the price continued to drop.”
This article does not provide investment advice. Always research thoroughly before making investment decisions.
