Bitcoin Nears Historic Price Floor as Oversold Readings Mount
Bitcoin's price has been tracking close to the lower boundary of its long-term power law model, which has held around 96% accuracy throughout the asset's history. The current reading is at the extreme low end of the range, but it hasn't broken decisively below that boundary.
The analyst pointed out that Bitcoin has been essentially flat against the Nasdaq for nine years, despite carrying more volatility and risk over that period. A 14-week relative strength reading shows a high of 72, which is the highest on record and has persisted for more than 24 weeks.
This dynamic also appears in comparisons to gold, with Bitcoin's realized price near $53,000 sitting at its most oversold level against the metal in the pair's history. The analyst notes that prior readings near these levels have historically appeared close to major Bitcoin lows, with the market continuing lower for a period afterward before eventually recovering.
The current downturn has lasted around 40 weeks, roughly three-quarters of the way through its historical time-based length. If past patterns hold, a low could form around November, though this is based on a small sample and shouldn't be taken as a price target.