Bitcoin is Oversold Using Williams Percentage Range and Relative Strength Index (RSI) Metrics
It seems that the Williams %R Indicator indicates that Bitcoin is oversold. This indicator has a range between 0 and -100 and shows when an asset is oversold or overbought. In this case, Bitcoin seems to be in an oversold moment.
The last time the market was oversold was in August when the famous virtual currency moved from $6,000 up tp to $7,300 dollars.
This tool is used by traders to identify market momentum. Overbought conditions range between -20 and 0 and oversold between -80 and -100. In the past, this tool was very effective to detect market reversals.
In general, traders do not only use this indicator while trading. Its effect can be much more powerful if it’s combined with other indicators. A market reversal would happen if the price of the famous virtual currency breaks above $7,500 dollars.
In the last rallies, Bitcoin was not able to cross the $7,500 and $8,500 barrier. Higher prices in the next bull run could be very positive for Bitcoin and mark the end of the bear market.
At the moment of writing this article, Bitcoin is being traded close to $6,500 dollars and has a market capitalization of $112 billion dollars. In the last 24 hours, the price remained stable.
However, one week ago, the currency was traded around $6,200 dollars. The price is now moving between $6,460 and $6,560 dollars, according to CoinMarketCap.