Bitcoin (BTC) is rapidly moving towards the “oversold” zone, but it is still trading above $40,000. As analyst Matthew Hyland noted on Jan. 14, Bitcoin's relative strength index (RSI) fell this week to its lowest levels since September. Following the US launch of the first spot Bitcoin exchange-traded funds (ETFs), BTC price fell 15% and is struggling to bounce back. The RSI indicates that a reversal may be imminent. On daily time frames, the classic momentum oscillator fell to 42.7/100 on January 14.

The RSI's hurdle to the "oversold" area at 30/100 could be the major test ahead. On hourly timeframes this week, the RSI crossed the 30/100 line twice and recovered and traded at higher lows on both occasions. Last week, the Bollinger Bands volatility indicator showed that BTC/USD was in volatile mode again after a contraction period. Current prices point to a trip almost to the bottom of the widening channel, which hasn't really been challenged since mid-September.#cryptocurrency#bitcoin #analysis

How do you think the Bitcoin price will follow in the coming days? We are waiting your comments!