Historic Moment: Altcoin/Gold Valuation Falls into the 'Extreme Cold Zone'

Currently, the valuation of altcoins relative to gold is at a historic low. This is not just a simple correction, but a milestone financial juncture.

Here are several core signals we need to pay attention to:

Oversold Indicator Hits Bottom: The RSI (Relative Strength Index) on the weekly chart has risen to 25. In technical analysis, this is often seen as a signal of extreme overselling.

Rare Historical Repetition: Such a low RSI level on a weekly basis has never occurred in this way historically; it represents a severe depletion of market momentum.

Prices Have Returned to the Starting Point: The chart shows that the current valuation has reached its lowest point since 2021. We have erased all gains from the past few years, returning to that crucial support range.

🦢 Is this a 'Black Swan'?

Historically, the last time we saw such a level of valuation collapse and technical divergence was during the global market crash caused by the outbreak of COVID-19 in 2020.

That was a widely recognized 'Black Swan' event. The recent severe market fluctuations, whether in terms of depth of decline or the level of despair in market sentiment, fit the characteristics of a Black Swan event. The market is undergoing a brutal reshuffling, and this deep 'squat' is often a means of building strength for a possible 'jump' in the future.