Definition ∞ RSI near Capitulation describes a situation where the Relative Strength Index, a momentum oscillator, registers extremely low values, typically below 30, indicating an oversold market condition approaching investor capitulation. Capitulation refers to a period of intense selling pressure where investors abandon their positions regardless of price, often out of despair. An RSI reading near capitulation suggests that selling pressure may be exhausting, potentially preceding a price reversal. It signals extreme bearish sentiment.
Context ∞ Financial news often references RSI near capitulation as a technical signal that a market bottom might be approaching for a cryptocurrency. While it does not guarantee an immediate rebound, such readings often accompany periods of significant price corrections. Traders and analysts monitor these extreme RSI levels for signs of a potential market turnaround or a period of accumulation by long-term holders.
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