A key metric indicates that Bitcoin (BITCOMP) is due for a bounceback, according to Raoul Pal, CEO of Global Macro Investor, a global macro advisory publication.

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What Happened: Pal made the observation on Twitter with regard to the Relative Strength Index. The RSI is an indicator used by technical analysts to measure the magnitude of recent price changes in order to appraise overbought or oversold conditions of an asset. 

The RSI is shown as a line graph that moves between two ends and can be depicted between 0 to 100. 

Pal said that the weekly RSI is closer to the levels seen in the corrections in the first part of the 2017 bull run “before bitcoin hit hyperspace.”

Noting the corrections in a bull market as "opportunities" rather than "threats," the investment strategist added that “these are the pauses that refresh a bull market.”

Why It Matters: Pal is optimistic on Bitcoin, despite the steep fall seen on Sunday in the apex cryptocurrency’s price which fell to as low as $47,159.49.

At press time, BTC was trading 6.04% higher at $52,894.31, which is 12.16% above Sunday’s lows.