Bitcoin Oversold | Analyzing Past Bounce Potential

[00:00:00]Look back then, we got oversold oversold on the daily time frame. That was in May 22. Then we saw a recovery on the daily RSI to the 50 level which was here. The It's basically just a boundary, yeah? The bearish boundary, you can say on the RSI. So, RSI recovered, but then further downside. And you see that an oversold reading often leads to a bounce. There was a bounce after the initial sell-off when we broke out of this bear flag to the downside, a recovery, but then further downside and the price got oversold again. So, just because we are oversold, it doesn't mean we couldn't go any lower because that's what I've read a lot of times now, like short squeeze incoming and we are oversold, we can't drop much further. Yeah, we can, especially in a bear market. The market can stay embedded in oversold regions for a while, but usually Bitcoin produces a decent bounce when the market is oversold and even here after the 2022 May lows, um Bitcoin recovered. I think it was like 25% or something. I mean, 30% even.

[00:01:09]So, I'm not saying this was super bullish, but it was a decent bounce coming from an oversold reading.