Bitcoin plunges below 63k entering oversold territory
The price of Bitcoin (BTC) has been steadily decreasing for the past two weeks, placing the flagship cryptocurrency in the undervalued territory. Currently, BTC has dropped by 3.2% in the last 24 hours and is trading at $62,300. Interestingly, this is the first time in six weeks that the price of Bitcoin has fallen below $63,000. The market cap of the asset has also decreased to $1.22 trillion, which was last observed on May 15.
On the flip side, the daily trading volume of BTC has experienced a significant increase of 91% in the past day, surpassing $17 billion.
It’s worth noting that spot BTC exchange-traded funds (ETFs) in the United States have seen six consecutive days of outflows, which has caused increased fear, uncertainty, and doubt (FUD) in the cryptocurrency market.
According to data from Santiment, the relative strength index (RSI) of BTC currently stands at 35 after continuously declining for three weeks. This indicates that Bitcoin is oversold at the moment, suggesting a potential price rally.
Despite the declining RSI, the substantial surge in Bitcoin’s daily trading volume may indicate high price volatility.
Data from the market intelligence platform reveals that the inflow of BTC into exchanges has dropped from 18,726 coins to 14,547 coins in the last 24 hours. Similarly, the outflow of BTC from exchanges has decreased from 20,344 tokens to 14,648 tokens within the same timeframe.
These movements suggest that investors may be looking to accumulate Bitcoin at this price level, viewing the $62,000 mark as a local bottom for the leading cryptocurrency.
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