Bitcoin enters the oversold zone after falling below $63k

Bitcoin (BTC) price has been falling steadily for the past two weeks, consequently placing the flagship cryptocurrency in undervalued territory.

BTC is down 3.2% in the last 24 hours and is trading at $62,300 at the time of writing. In particular, it was the first time in six weeks that the Bitcoin price fell below $63,000. The asset’s market value has fallen to $1.22 trillion, last seen on May 15.

BTC price, RSI and forex net flows – June 24 | Source: Santiment

On the other hand, daily BTC transaction volume increased by 91% last day and exceeded 17 billion dollars.

It is important to note that spot BTC exchange-traded funds (ETFs) in the US have recorded outflows for six consecutive days, bringing increased FUD (fear, uncertainty and doubt) to the cryptocurrency market.

According to data provided by Santiment, the BTC relative strength index (RSI) currently stands at 35 after witnessing continuous declines for three weeks. The indicator shows that Bitcoin is oversold at this point, indicating a potential price rally.

A large increase in Bitcoin’s daily trading volume despite a falling RSI may indicate high price volatility.

Data from the market intelligence platform shows that BTC exchange inflow dropped from 18,726 tokens to 14,547 tokens in the last 24 hours. Moreover, BTC exchange outflow dropped from 20,344 tokens to 14,648 tokens in the same time period.

The moves suggest that investors may look to accumulate Bitcoin at this price point and view $62,000 as a local bottom for the leading cryptocurrency.