Bitcoin Market Analysis by David Cox

Bitcoin, the leading cryptocurrency by market cap, is currently oversold on the six-hour chart, according to David Cox, portfolio manager at Raymond James.

This marks the first instance of overselling since Bitcoin approached the low-$100,000 zone on June 22.

The RSI(5) indicator uses the last five candles (30 hours in total) to assess market sentiment. The chart shared by Cox indicates multiple instances of RSI oversold bounces that corresponded with short-term bottoms for Bitcoin. This bearish momentum may, in fact, be interpreted as a bullish price signal in the short term.

Currently, the RSI is at approximately 26, indicating that Bitcoin is oversold. However, trading volume appears subdued, suggesting that bears do not fully dominate the market yet.

Reportedly, Bitcoin recently achieved its highest-ever monthly and quarterly closes, indicating a strong position for potentially reaching another record high. Nonetheless, the beginning of Q2 has seen a lackluster performance, with Bitcoin’s price slipping below the $106,000 mark, hitting an intraday low of $105,987.

Trader Jonny Moe expressed optimism that Bitcoin could still achieve a new record high this summer, though it may take several weeks to materialize.

Bitcoin’s latest dip has coincided with a 1% drop in the tech-heavy Nasdaq 100 stock market index.