Bitcoin is massively oversold as seen from the RSI indicator on the 4H chart. Even as some market watchers are optimistic that this could herald a reversal, some are skeptical that this may not be the case. Justin Bennett, a crypto market analyst, said that the market would see more drains in the coming weeks, alluding to lower values for Ethereum.
In a Twitter post that he made on Friday, August 9, Bennett said that ether would find support at regions far lower than most analysts anticipate.
— Justin Bennett (@JustinBennettFX) August 19, 2022
Massively Oversold Coins
Bitcoin is currently trading at $21,188 according to data from Tradingview. The coin is down by 3% in the past 24 hours and from the 7-day chart, it has lost 13%, bringing its market capitalization down to $405 billion.
On the 4H chart, BTC is massively oversold as seen from the RSI indicator. At the time of reporting, the RSI value on the BTC/USD chart is 24. Hours earlier, it recorded values as low as 14, indicating that the price of the digital currency could make an upswing. What is uncertain is how far the bounce would go and for how long.
Support At A Lower Level
What is obvious is that the coin will find a support at a lower level.
Ethereum is currently trading at $1,636, having lost 6% in 24 hours, bringing its one week loss to 18%. On the ETH/USD chart, the cryptocurrency registered an RSI of 18 in the past few hours, coinciding with the point where BTC was massively oversold.
Even with the prospects of a reversal, some analysts are skeptical that the bottom is in. Justin Bennett of CryptoAcademyHQ said that the bottom of ETH is close to the $300 region in a post he tagged as an unpopular opinion.
In his reaction to the post, Salman Lakhani wrote:
“The current trend lines are similar to ones which were in 2017-2018. As per history, we can see numbers like 500$, 387$ in the most worst case scenario which we currently are in overall market condition,”