GB Market Commentary 24/01/2022
by Marcus Sotiriou
Bitcoin plummeted to $34,000 over the weekend as its correlation to the US stock market strengthens. The rapidly changing Federal Reserve policy in response to rising inflation has caused extreme fear in both legacy and crypto markets.
Bitcoin has reached its lowest level on the daily RSI (Relative Strength Indicator) since March 2020, which was the time of the COVID crash. Also, the weekly RSI currently sits at 37. The fact that every bear market bottom for Bitcoin has ranged between 29-35 on the weekly RSI suggests that the risk/reward is advantageous for buying in this area if you believe in the long-term value of this asset class.
Furthermore, the MVRV ratio (market value divided by realised value) is an indicator that many analysts are studying.