Bitcoin is undoubtedly the world’s largest cryptocurrency, with a current price of just over $49,600 and a market cap of $931,213,468,626. However, this price is a far cry from its all-time high, which had been reached not too long ago, where the digital asset had managed to go as high as nearly $65,000 just two weeks ago. The situation was worsened when the price experienced a significant drop within the previous 72 hours, as just a little earlier, the price had dipped below $48,000 (before improving slightly to $49,000).
This is the lowest that the BTC price has gotten for a long time, and it has left many in a state of uncertainty and panic as they continue to wonder whether the world’s biggest cryptocurrency will be able to recover from this major setback or not.
Bitcoin is vastly undervalued at the moment
One of the more interesting things that have occurred as a result of the recent dip in BTC’s price is the fact that Bitcoin has not been this oversold since March 2020. The RSI (Relative Strength Index) has decreased to about 31.93, which implies that the digital asset is actually severely undervalued at the moment, giving investors more incentive to buy at the dip.
The Relative Strength Index is usually utilized for the purposes of finding out whether an asset has been oversold or overbought. If it is overbought, then this could mean that the asset has become overvalued and is therefore very likely to begin decreasing. In the case of it being oversold, then it simply means that the asset has become undervalued, and so potential buyers and investors will consider stepping in to hopefully have the price trend reversed.
It should also be mentioned that even though the RSI would normally have to dip below 30 in order to be oversold, the aforementioned 31.93 is said to be already drastically oversold. This consideration had been taken into account after realizing that crypto markets are generally quite bullish for the long term.
Bitcoin might reach new ATHs after it bounces back
Ultimately, all of this could theoretically mean that the world’s largest cryptocurrency could, in fact, be preparing itself to recover and bounce back better than ever before.
As a result, new all-time highs may be reached, which could be drastically higher than what had previously been considered as the peak before, despite the fact that the short-term attitude seems to be quite bearish for now.