It is estimated that Bitcoin will experience its next block reward reduction in about 30 days – the so-called “halving,” in which the number of coins issued per block is halved from 12.5 to 6.25. Although halving has traditionally been viewed as a very positive event for the Bitcoin market, the slump in cryptocurrency has taken a macro perspective in recent months, with BTC trading just 6 percent higher since its December low of $ 6,400.And as a result, the cryptocurrency is heading for this weak event from a technical point of view. But should this be a cause for bull concern?
Bitcoin’s macro RSI paints a shocking picture
If you’ve traded an asset or read Bloomberg, you are probably familiar with the Relative Strength Index (RSI) indicator – a measure of whether an asset is overbought or oversold, determined by the strength of trends.According to PlanB – the prominent, pseudonymous crypto trader – the one-month RSI for Bitcoin was “never so weak” shortly before a halving, which is now only a month away. In fact, the RSI is below 50, which tends towards “oversold”, while before the previous halving it was almost 60 or slightly “oversold”.