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In 1810, Nathan Rothschild made an interesting statement and inferred that investors should “buy with a cannon and sell with a trumpet”. Famous investors who adopted Rothschild’s inference prefer to invest during the times when the market is experiencing overselling. They believe that the best time to buy is when the price drops.
Altcoins and the Overall Market Situation
Based on Rothschild’s idea, a research was conducted analyzing the weekly Relative Strength Index (RSI) heat map from CoinGlass on October 19th. Most of the top cryptocurrencies had these mentioned oversold signals.
Looking at this situation, it can be interpreted as an opportunity for investors who want to have new positions in the cryptocurrency market or add to their existing positions. However, this should be done with caution.
The CoinGlass analysis pointed out a critical point. Especially when looking at the 7-week time frame, it showed the average weekly RSI level of 33.28, which indicates the oversold and average boundary. The mentioned average level suggests that the price movement is more likely to continue the downward trend rather than being a good buying opportunity.
The Current Situation of Cryptocurrencies
Interestingly, Ethereum (ETH), BNB Chain (BNB), Arbitrum (ARB), Ethereum Classic (ETC), Axie Infinity (AXS), Dash (DASH), Uniswap (UNI), Aptos (APT), which are some of the famous and top cryptocurrencies with higher market values compared to their competitors, were found in the “oversold” range.
Some altcoins experienced a decline due to negative news, and other news that could affect the price was also shared with investors. As an example, the anticipated key opening in the Axie Infinity project on October 20th last week can be mentioned.
As with any situation in technical analysis, investors should not base their investments solely on these data. In addition, crypto traders and value investors can pay attention to whether the “tops” or the “trumpets” will be played.
