Bitcoin's Relative Strength Index Indicates Oversold Status Against Gold

According to Foresight News, CoinDesk analyst Omkar Godbole reports that Bitcoin's 14-day relative strength index (RSI) against gold is currently at its most oversold level. The RSI has dropped to 22.20, slightly below February's low, reaching levels not seen since November 2022. Typically, an RSI reading below 30 is considered oversold, suggesting that Bitcoin has experienced significant selling pressure relative to gold, potentially undervaluing the ratio between the two. However, an oversold RSI alone does not guarantee an immediate bullish reversal for Bitcoin against gold. Confirmation from other technical indicators is necessary, such as signs of a downtrend exhaustion, bullish divergence, or increased buying volume. Without these supporting signals, the oversold condition may persist in a strong downtrend, indicating that despite the low RSI, prices could continue to decline. Given the bearish technical backdrop, Bitcoin bulls need to remain patient and wait for clearer signs of a trend reversal before expecting a sustained recovery. Meanwhile, the 14-day RSI for BTC/USD has not yet reached the oversold territory, and the MACD histogram continues to form deeper bars below the oversold region, indicating that selling pressure may persist. The price has been confirmed below the 200-day moving average, which could trigger more momentum traders to sell. Data shows that the 50-week simple moving average (SMA), currently around $101,700, remains a key support level for Bitcoin. Since the bull market began in early 2023, this moving average has provided reliable support, helping prices reach new highs.