BTC on Track for its 8th Consecutive Weekly Loss Are We Oversold

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Bitcoin (BTC) is on track to record losses for the eighth week in a row, the longest streak of losses in history. Before this streak, the previous biggest consecutive weekly losses were recorded in December 2014, when Bitcoin was worth just a few hundred USD and was down for five weeks in a row.

Is Bitcoin Oversold?
Despite the severe sell-off, Bitcoin is still not oversold, according to the most popular momentum oscillators. Bitcoin’s current weekly RSI reading of 33.67 shows that we aren’t oversold just yet. The RSI oscillator would need to fall below 30, or even 20, to be considered oversold.

Meanwhile, the stochastic oscillator has entered oversold readings, but unlike the RSI, it has the tendency to stay in oversold readings longer, as it is more volatile and quick to react.

By comparison, in 2014, after the record weekly losses streak, Bitcoin consolidated for 31 weeks before it resumed an upward trajectory.

Looking forward: The Bitcoin sell-off can slow down in the near future, and we might see a temporary bottom around the $30,000 considerable round number. However, in the long-term, the correction can extend all the way to $20,000, which is a massive support level since it is the all-time high reached in the 2017 bull run. A fall to $20,000 would also allow the RSI oscillator to reach oversold readings.