Here’s what Stochastic RSI (STOCH RSI), one of most reliable technical analysis indicators, tells us about BTC price prospects
The Stochastic Relative Strength Index (Stoch RSI), a leading momentum indicator, says that Bitcoin (BTC) may be nowhere near its price floor if history repeats itself.
Stochastic RSI: BTC remains oversold for entire 2022
As of mid-October 2022, Stochastic RSI for the Bitcoin (BTC) price remains in the “oversold” zone. Stoch RSI is sitting below 20/100 for ten months in a row — since January, 2022.
The previous longest “oversold” periods were April 2014-September 2015 and April 2018-April 2019. This means that the bearish downturn for the first cryptocurrency is far from over.
However, periods of “oversold” Stoch RSI unlock amazing buying opportunities for long-term investors.
The Stochastic Relative Strength Index, or Stoch RSI, is calculated by applying the Stochastic Oscillator formula to a set of relative strength index (RSI) values registered over this or that period.
“Fear and Greed” index drops to 20 as BTC slips below $19,000
Just like “regular” RSI, this indicator is used to check whether the market is controlled by bulls or bears. Stoch RSI above 80/100 means that the asset is overbought; when the indicator plummets below 20/100, traders say that it is oversold.
Meanwhile, yesterday, Bitcoin (BTC) fell below $19,000 for the first time in a week. Following this fall, the Fear and Greed Index by Alternative also fell to 20, the lowest level since mid-July.
The indicator has not been able to leave the “Extreme Fear Zone” for over two months in a row.
