Bitcoin (BTC), despite recent losses, refused to stop Jan. 22, as the predictions of a flight up to $33,000 or lower seemed increasingly likely.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView.
Open interest “still is not flushed”
Data from TradingView and Cointelegraph Markets Pro followed BTC/USD’s fall through $35,000 in the first half Saturday.
There are few silver linings for bulls and lower weekend volume is likely to produce classic erratic moves following Friday’s Bitcoin loss of $40,000 support.
El Salvador was one of those who made the most out of the lower levels. However, some expressed concern that bulls were still under pressure despite the drop.
Analyst William Clemente, a trader and analyst, stated that the crazy part of derivatives trading is still being pursued.
“After all the carnage and absolute state panic funding somehow isn’t giga positive, futs don’t backward and OI barely dropped. These are interesting times. “Poverty” is what I mean by “interesting”, a popular Twitter account ByzantineGeneral added.
Chart of Bitcoin futures funding rates (Binance). Source: Coinglass.
RSI falls towards March 2020 COVID lows
The relative strength index (RSI), which measures Bitcoin’s relative strength, provided some relief. It dropped to its lowest level since March 2020.
Related: The relative strength index (RSI), can be used to signal a sell.
BTC/USD plummeted to $3,600 at that point, before making a strong comeback that would continue well into the next year.
Daily RSI was at 20 on Saturday, well below the “oversold” zone.
BTC/USD 1-day Candle Chart (Bitstamp), with RSI. Source: TradingView.
Michael van de Poppe, a Cointelegraph contributor, commented that the situation was “a bit more reliable than Bitcoin” and that the total market capitalization was at the next level of support. However, the daily RSI has fallen to its lowest level since March 2020.
“Equities sentiment has also fallen to its lowest level since March 2020. It says it all.
The equity markets took a tumble towards the end, with tech stocks in particular on fire, and crypto once more showing its positive correlation.