Bitcoin Enters Oversold Region, BTC/USD Below $9,000 Price Level

In traditional financial markets, MFIs below 20 are considered to be oversold and above 80 are overbought. RSIs below 30 are oversold and above 70 are overbought. Bitcoin's MFI and RSI are both oversold. These two indicators range from 0 to 100 and are widely used as investment aid indicators in traditional financial markets. In the digital currency market, the RSI and MFI indices generally reflect price direction except for panic markets.

The correlation between Bitcoin's value and on-chain trading volume is high from January 1, 2018 to January 31, 2020. Therefore, RSI and MFI indicators using price index and on-chain trading volume are expected to be significant in the cryptocurrency market. RSI is an indicator that only considers price changes, and MFI is an indicator of RSI plus volume intensity.

BTC/USD Analysis

At press time, the price of BTC is still below the $9k cap. It is trading at about $8,811 (-4,12 percent), with a trading volume (24h) of more than $52.7 bln USD and market cap of almost $160.722 billion US dollars. Bitcoin is still dominating the market by 64 percent. The prediction which was saying that BTC/USD price will plummet to hit below the $9,000 has finally come true in just less than a month after the cryptocurrency changing hands with a high of $10457, according to the data from coinmarketcap.

Bitcoin price volatility could be rising due to internal and external events such as global economic slowdown caused by coronavirus and Wilshire Phoenix's refusal to apply for Bitcoin exchange-traded fund (ETF).