Williams %R, a technical analysis oscillator that demonstrates oversold or overbought conditions of an asset, is demonstrating highly oversold conditions for Bitcoin. As Olga Kharif at Bloomberg reported, the Williams Percent Range (WPR) of Bitcoin is hovering at around -83 percent. In WPR, -80 to -100 percent is considered oversold and -0 to -20 percent is oversold.
Analysts state that the oversold condition of Bitcoin demonstrated by WPR could lead to a short-term corrective rally in the future, which may enable Bitcoin to break out of a major resistance level at $6,900.
Since February, Bitcoin has continued to bounce off of the $6,000 mark, achieving a new monthly high the subsequent month only to fall back to $6,000 to stabilize. A same trend has been demonstrated by the market in the past two weeks, suggesting that a corrective rally is due.