Investment strategist Raoul Pal found that Bitcoin’s two-week relative strength index (RSI) recently fell to its lowest level since the crash of “Black Thursday” in March 2020.
Raoul Pal, a global macro investor and CEO of Real Vision Group, also pointed out that Bitcoin’s weekly RSI has fallen to a level comparable to the “correction in the 2017 bull market (before Bitcoin enters the multidimensional space).”
According to TradingView data, Bitcoin plummeted by about 15% last weekend, and on Sunday, Bitcoin dropped from $55,000 to around $47,250.
Bitcoin is close to the oversold level of March 2020…
-Raoul Pal (@RaoulGMI) April 25, 2021
Pal added: “A correction in a bull market is an opportunity, not a threat.”
On-chain analytics provider Glassnode also noticed the severity of Bitcoin’s decline. Its report stated that on April 25, the number of Bitcoin addresses that lost money reached nearly 6.4 million, a 9-month high. Despite this, 86% of Bitcoin addresses are still profitable.
The percentage of profit from the Bitcoin supply (7d MA) has just reached a 6-month low of 85.938%
The last time it reached a low of 85.989% within 6 months occurred on April 25, 2021 – glassnode alerts (@glassnodealerts) April 26, 2021
The market seems to have agreed with Pal’s statement that Bitcoin should have rebounded long ago. Bitcoin bounced by 11.5% within 6 hours after Bitcoin hit a local low of approximately $47,000 earlier today.
According to the Glassnode chart, analyst William Clemente III observed that during the Asian trading session on Monday morning, as the market rebounded rapidly, $88.7 million bitcoin short positions were liquidated.
Shorts are suffering. In the past two hours, $88,696,765 Bitcoin shorts have been liquidated-William ClementeIII (@WClementeIII) April 26, 2021
Despite a sharp rebound, Bitcoin has fallen 27% from its all-time high of $65,000 on April 14. Bitcoin’s dominance has dropped to 50%. According to TradingView data, the last time the Bitcoin market share fell below 50% was in July 2018.