Bitcoin RSI Dips Below 30—Is A New All-Time High Next?

The 14-day Bitcoin Relative Strength Index (RSI) has dropped into the oversold region, which could indicate a potential correction. The RSI measures the speed and magnitude of price changes over a specific period, in this case, 14 days. When the RSI is above 70, it may be a sign that the price is due for a correction, and when it's below, it may imply the asset is becoming underbought. The 14-day RSI has plummeted recently and is now below the 30 threshold, suggesting the cryptocurrency is becoming oversold. Analyst Axel Adler Jr notes that other metrics are also showing alerts, and all conditions are in place to start testing the all-time high (ATH). However, Bitcoin has actually declined during the past day, and on-chain data may provide hints about where the next potential support could be. The average cost basis of short-term holders is located at $97,100, which has often been a relevant support and resistance. Another level to watch is the -1 standard deviation band, currently situated at $83,200. Additionally, the Spent Supply Distribution (SSD) Quantiles model suggests a key level at $95,600, which is close to the short-term holder cost basis.