Bitcoin Just Flashed Oversold Signal. Is Much-Awaited Bounce Coming?

Bitcoin, the leading cryptocurrency by market cap, is oversold on the six-hour chart, according to David Cox, portfolio manager at Raymond James.

This is the first time that this has happened since the cryptocurrency approached the low-$100,000 zone on June 22.

The RSI(5) indicator uses the last five candles (30 hours in this case) to gauge sentiment

The chart shared by Cox shows several RSI oversold bounces that marked short-term bottoms for the leading cryptocurrency. Hence, this bearish momentum might actually be interpreted as a rather bullish price signal in the short term

The current RSI stands at roughly 26, meaning that Bitcoin is oversold. That said, the fact that trading volume appears to be rather subdued shows that bears are not fully in control just yet

As reported by U.Today, Bitcoin recently recorded its highest-ever monthly and quarterly closes, seemingly being in a strong position to record another record high

However, the second quarter has had a rather underwhelming start. The Bitcoin price has now fallen below the $106,000 price mark, slipping to an intraday low of $105,987

Meanwhile, trader Jonny Moe believes that Bitcoin will still be able to set a new record high this summer, but it could take several weeks

Bitcoin's most recent dip has coincided with the tech-heavy Nasdaq 100 stock market index dropping by 1%