Bitcoin triggers weekly oversold signal for the first time since June 2022#当前行情抄底还是观望？

On February 5, according to Tradingview data, as the price drops below $71,000, Bitcoin triggered its first weekly RSI oversold signal since June 2022, currently at 29.21.

RSI stands for Relative Strength Index, one of the most commonly used technical analysis indicators in stock, futures, forex, and cryptocurrency markets. It was introduced by American technical analyst J. Welles Wilder in 1978, primarily to measure the speed and magnitude of price movements, determine whether the market is overbought or oversold, and help investors identify potential reversals or trend continuation signals. Generally, an RSI value falling below 30 indicates an oversold condition.

An RSI oversold signal does not necessarily mean the price is at an absolute low. In June 2022, Bitcoin briefly fell below $18,000, with an RSI value of about 26.2. In November of the same year, Bitcoin dropped to $15,600 during the FTX collapse, but at that time, the RSI was 31.4, showing a divergence compared to the June low (i.e., the price made a new low, but selling pressure eased).