After support broke the other day and some panic selling started BTC dropped down to around $5500, took a little breather, and then continued the selloff a few days later down to at least to around $4200. It looks like we are finally starting to bounce a bit, but lets see.
On another note, BTC has never been this oversold. Ever. At least when looking at the daily time frame.
As seen below, the daily RSI is currently around 11 -- lower than ever before (on the Bitstamp exchange, which seems to have the longest available records).
So, a major bounce should happen soon. The drop has continued for some time in already oversold conditions, so we've definitely entered very oversold areas. That, of course, doesn't mean that a big bounce must happen, but it would definitely be the expected thing in many regards.
Looking at the weekly RSI, the story is somewhat different. We haven't reached oversold conditions yet -- but are rapidly approaching.
The last time the weekly RSI was oversold was during the long bear market in 2014. Is this what we need to reach before the bull market starts?