newbitech
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October 04, 2014, 09:35:00 PM

We are very oversold here on the weekly chart. I dont remember seeing the RSI so low ever ... hovering around 30ish

RSI below 30 is oversold.  If you are looking at the weekly chart for bitstamp, BTC has never ventured into oversold territory. On the other hand, RSI > 70 is overbought.  BTC has peaked the RSI twice and has ridden a very large chunk of time in overbought territory.  

To say that BTC is oversold is inaccurate.  It could be after this week, but to use the term "very" even if it does dip below 30 this week is a misreading of that indicator.  

The market is going to find a balance in price level eventually.  BTC has been one of the most well behaved technical charts I've ever seen.  To find that balance, I suspect you are going to see some very oversold conditions and perhaps peak the RSI to the down side 1 or 2 times before it starts bouncing around with stability between 30 and 70 RSI.