Ouch. Bulls haven’t had the best of weeks, with Coin360 reporting that Bitcoin (BTC) has shed some 14% in the past week, trading at $7,300 as of the time of writing this article. Despite the decisively bearish price action, some believe that this market is bottoming, at least for the time being. Here’s why.<\/p>\n
Firstly, the Chonky One noted<\/a> made a simple observation on Friday morning that Bitcoin’s local bottoms and tops can normally be easily determined; more specifically, “during a bearish weak, Bitcoin usually puts in the low of the week on the Thursday or Friday… the same is true for the high of the week during a bullish week.”<\/p>\n https:\/\/twitter.com\/ChonkyOne\/status\/41991936<\/p>\n Indeed, as his chart shows above, Bitcoin sees its most extreme price action on the Thursday or Friday of the week for some reason or another. With $6,800 being tapped yesterday, a Friday, the low of the week is likely in.<\/p>\n That’s not all. Scott “The Wolf of All Streets” Melker<\/a> noted that during yesterday’s plunge to $6,800, BTC’s four-hour Relative Strength Index (RSI) had 6.5, which is the lowest ever on Coinbase’s market and the lowest it has been in 2019. As the RSI oscillates between 0 and 100, a reading of 6.5, which is extremely rare, implies that the asset being analyzed is extremely oversold, and due to bounce as a result.<\/p>\n 4 Hour RSI is presently 6.5, which matches the lowest that it has EVER BEEN on Coinbase and the lowest it has been this year. Buying some Bitcoin. pic.twitter.com\/1DceRyuBsC<\/a><\/p>\n — The Wolf Of All Streets (@scottmelker) November 22, 2019<\/a><\/p><\/blockquote>\n\n