Bitcoin is exiting the short-term oversold zone. This suggests a likely rise in the price of the cryptocurrency in the coming days or weeks, according to the on-chain metric Active Address Sentiment Indicator (AASI).
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The chart below shows the yellow line crossing the lower boundary of the range for the number of active addresses.
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That, according to the indicator’s description, is a sign of improving market sentiment and a potential short-term rise in the cryptocurrency’s price.
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Bitcoin’s oversold condition is indicated by the Net Unrealized Profit/Loss (NUPL) — the line is again sinking into the capitulation zone.
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A similar signal is shown by a longer-term indicator — the RHODL Ratio.
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\”The RHODL Ratio is useful for forecasting Bitcoin price amid extreme market conditions. It can foresee a period when the price of the cryptocurrency may retreat downward. In that case, the metric’s line enters the upper range, highlighted in red. The price may also begin a rally after the indicator’s values stay in the green range for some time,\” — according to the instrument’s description.
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As of writing, the leading cryptocurrency is trading around $21,400. Over the past seven days, the price of digital gold has fallen 11.4%, according to CoinGecko.
Earlier, Capriole Investments founder Charles Edwards came to the conclusion that the period of miners’ capitulation has passed. In his words, \”a great buying signal\”.
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