The liquidity crisis and related developments around the cryptocurrency exchange FTX have shaken the entire crypto sector down to its core, wreaking havoc on its largest assets, including the flagship crypto – Bitcoin (BTC) – which has never been weaker.
Specifically, the Bitcoin relative strength index (RSI) chart demonstrates that the maiden digital asset has reached an all-time low monthly index of 40.5, as renowned pseudonymous crypto trading expert PlanB observed on November 10.
As it happens, the largest decentralized finance (DeFi) token’s relative strength has dropped below its previous all-time low, which was recorded in June 2022, when it stood at 43.7, almost 60% below the monthly all-time high value, as Finbold reported.
In the meantime, Bitcoin mid-term holders, who bought the token between three and six months ago, have been sending their BTC supply to exchanges in increased volume, which represents a bearish signal, as a CryptoQuant analyst confirmed on November 11.
Slow road to recovery
This information arrives at a time when Bitcoin is trying to keep its head above the $17,000 level, changing hands at the price of $17,325 at press time, which is 15.64% down across the week but still represents a modest recovery of 3.40% on the day.
At the same time, another pseudonymous analyst, Moustache, noted that the current price activities of Bitcoin so far are “only a bearish retest from the June lows” of $17,600 and suggested “keeping it simple:”
“Reclaim the Line = Bullish; Below the line = Bearish”
Meanwhile, Bitcoin’s recovery was sparked by the consumer price index (CPI) data for October coming out lower than anticipated, with inflation rising 7.7% instead of the expected 8% and lower than September’s 8.2% price hike.
As a result, the token added $15 billion to its previously declining market capitalization in just 15 minutes after the CPI results became public, halting the bloodbath that had been slashing crypto prices for several days up to that point.
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