Bitcoin's value has plummeted to its lowest point since the 2020 Covid-19 crash, influenced by rising bond returns.
Bitcoin's Strength Drops to Lowest Since 2020
Bitcoin's key measure, the relative strength index (RSI), shows it is very weak, the weakest since the Covid-19 crash in March 2020.
Bitcoin Affected by Bond Yields
Bitcoin and other risky things people invest in are affected as bond returns go up. Bitcoin's 14-day RSI is now under 30, showing it is very weak. This is the lowest it's been since the big drop in March 2020 because of Covid-19.
What is RSI?
RSI is a tool that shows how a thing's price is moving now compared to its average over 14 days. If the RSI is below 30, it means the price dropped very fast. If it's above 70, it means the price went up too fast.
Misunderstandings About RSI
Many people think a low or high RSI means the price will soon change direction. But it doesn't. A low RSI just means the price dropped fast. A high one means it went up fast. Sometimes, things can stay weak for a long time.
Bitcoin's Trend is Negative
Expert Alex Kuptsikevich says Bitcoin is now on a downward trend. It dropped below two important averages last week. Now, it might drop to around $24,700 from its current price near $26,000.
