Bitcoin (BTC) was never sold massively in the last month before halving block rewards, an important indicator shows.
In one the debate On Twitter April 11, analyst PlanB, author of the famous stock-to-flow Bitcoin price prediction model, noted that Bitcoin's relative strength index (RSI) is abnormally low. often.
RSI hit a record low before halving
This technical index uses a scale of 1 to 100 to determine whether Bitcoin is overbought or oversold at a specific price.
BTC's 12-month RSI is currently at 49 - near historic lows. According to data from PlanB, since 2011, only two periods witnessed RSI below such a low level, that is in 2015 and the end of 2018.
In addition, before the previous two halving sessions of Bitcoin in 2012 and 2016, the 12-month RSI was much higher - reaching a value of about 70.
There are only about 30 days left until the halving Bitcoin event takes place in 2020.
"#Bitcoin RSI ... has never been this weak before halving," PlanB wrote on Twitter. He later asserted that Bitcoin was oversold.
... But BTC is still on the right track
Halving is an important event for Bitcoin holders, as the amount paid to miners will be cut by 50% per block.
This increases Bitcoin's "rigidity" as money by reducing inflation and raising stock-to-flow ratios.
Stock-to-flow has proven accurate when predicting Bitcoin price performance. Despite criticism, this model has so far failed.
In general, the RSI is low - meaning that an asset is oversold, usually an indicator of a buy signal, a sharp increase in prices. Meanwhile, the BTC / USD pair is also currently located at the lower levels of the stock-to-flow corridor. As predicted by this model, the average price for Bitcoin by the end of 2021 onwards will be $ 100,000.
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According to CoinTelegraph
Translated by ToiYeuBitcoin