There's one simple way to tell whether bitcoin has really bottomed. Right now, it hasn't.
Key takeaways
- A recovery above that level would confirm that a bottom has been made, according to Material Indicators.
- There is a simple signal to get that confirmation.
- That signal comes from the widely followed momentum gauge called the relative strength index, or RSI.
A recovery above that level would confirm that a bottom has been made, according to Material Indicators. Crypto traders, having seen bitcoin BTC$62,895.02, the largest cryptocurrency, bounce overnight to $64,000 from recent lows under $60,000, may be wondering whether the bottom has been hit and a fresh bull run has started.
There is a simple signal to get that confirmation. Right now, it is saying the rebound has not started.
That signal comes from the widely followed momentum gauge called the relative strength index, or RSI. The measure can range from 0 to 100. Readings above 70 indicate that an asset is running hot and potentially overbought, while readings below 30 suggest the opposite. Between those extremes, specific levels often emerge as dividing lines between bullish and bearish environments.