Bitcoin, the leading cryptocurrency by market capitalisation, has flashed an oversold signal on the six-hour chart, according to David Cox from Raymond James.
Oversold Signal on Bitcoin Chart
David Cox noted that Bitcoin has become oversold on the six-hour chart for the first time since the cryptocurrency approached the low $100,000 level in June 2022. The RSI(5) indicator suggests this state, using data from the last five candles.
Current Market Situation
Currently, the RSI stands around 26, indicating that Bitcoin is oversold. However, subdued trading activity suggests that bears do not fully control the market yet. Bitcoin recently recorded its highest monthly and quarterly closes, which adds confidence to its market position.
Traders' Forecasts for the Future
Trader Jonny Moe believes that Bitcoin could set a new all-time high this summer, but it may take several weeks or even months to achieve. His forecast is based on the premise that the current oversold condition could lead to a rally.
The oversold signal for Bitcoin may indicate a forthcoming opportunity for growth; however, the overall market situation remains uncertain, and traders should closely monitor further developments.
