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Crypto analyst Quinten recently revealed that Bitcoin has entered oversold levels. However, analyst Dr. Cat has warned that, contrary to public opinion, this development is bearish, not bullish, for the flagship crypto.
In an X post, Dr. Cat stated that Bitcoin entering oversold levels is “super-bearish” and overbought levels are “super-bullish.” He explained that for the oscillator to reach oversold values, it means that the price actionhas been extremely bearish, indicating why investors are selling their holdings. Why Bitcoin Entering Oversold Levels Is Bearish The crypto analyst further remarked that Oscillators are range-bound indicators, so they can’t go beyond 0 and 100, as they are limited by their mathematical formulas. However, he added that the Bitcoin price can go lower or higher. Dr. Cat then alluded to Bitcoin’s bull markets, noting that all of them are in overbought territory on the weekly chart. Related Reading Bitcoin Price To Break $125,000 But Sell Everything In October, Analyst Warns 23 hours ago
The analyst stated that if an investor buys an oversold condition on a lower timeframe when Bitcoin’s higher timeframeis bullish, this is a good move. However, he remarked that whoever advises buying a weekly oversold chart based on the claim that it is bullish because it is oversold has no idea what they are talking about. Source: Dr.Cat on X
He remarked that many altcoins are oversold on the higher timeframe and can remain oversold as they approach zero, where the analyst claims they are eventually headed. Dr. Cat also explained that in a bull market, oversold conditions on the daily chart may mark higher lows on the weekly or monthly chart.
However, in a bear market, oversold conditions may persist or just lead to some consolidation before more downside. Dr. Cat then alluded to Quinten’s chart, which he said showed what daily oversold conditions led to one year earlier in different broader market conditions. The analyst cautioned that he wasn’t discussing whether Bitcoin is in a bull or bear market or where it is headed, but simply clarifying the misconception about oversold and overbought RSI. BTC’s Supply Overwhelming Demand At The Moment
In an X post, CryptoQuant CEO Ki Young Jurevealed that Bitcoin’s supply is currently greater than its demand at the moment, providing a bearish outlook for the flagship crypto. This supports the idea of BTC being in oversold conditions right now, with holders selling their coins rather than buying. Related Reading Bitcoin Price Forms This Bullish Pennant On Daily Chart That Could Trigger Rise To $137,000 4 days ago
Crypto analyst Ali Martinezrecently revealed that whales have been taking profits during the recent Bitcoin rally, offloading over 29,000 BTC since April 9. It is worth mentioning that Ki Young Ju recently asserted that Bitcoin’s bull market is over, noting that the flagship crypto is witnessing significant selling pressure.
At the time of writing, the Bitcoin price is trading at around $84,600, down in the last 24 hours, according to datafrom CoinMarketCap. BTC trading at $84,630 on the 1D chart | Source: BTCUSDT on Tradingview.com Featured image from Adobe Stock, chart from Tradingview.com