【BTCJPY】Indicated as oversold by RSI, yet...

In the post dated August 9 titled “【BTCJPY】There is no more support! Unstoppable decline,” we explained that a long bearish candle pushed the price down into the 670,000 yen range, the price showed a lower wick and rebounded, but there are no notable support levels to the downside.

This chart now includes RSI (period 14). Looking at the RSI on August 8, when the large bearish candle formed, it touched the oversold 30% level, and then formed a rebound with a lower wick, which is considered to be one of the reasons for yesterday’s bullish reversal. Depending on today’s movement, attention will be on whether the price will target around the neck-line extension of the inverse head-and-shoulders near about 750,000 yen, or re-target the 30% RSI level again.