Bitcoin is nearing an oversold zone, with analysts highlighting key technical indicators that have historically preceded significant rallies. The weekly Relative Strength Index (RSI) is approaching 30, a level that previously led to gains of 1,228% in 2020 and 341% in 2022. Currently, Bitcoin trades 13.3% below its 200-day moving average at $104,800, while 24-hour trading volume has increased by 34% to $37.5 billion.
Market data shows that only 4-6 million Bitcoin are available for trading, as 12-13 million are held long-term. This limited supply suggests that Bitcoin's price could be highly sensitive to institutional demand, potentially setting the stage for a significant price movement.
Bitcoin Approaches Oversold Zone, Analysts Eye Recovery Signals
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