Bitcoin prices fell 10% following two weeks of strong downturn. Its value went from $98,000 to $86,000 during this period. The major slump pushed Bitcoin into its most unpopular position since August 2024.
According to X Crypto analyst Ali Martinez the Bitcoin Relative Strength Index (RSI) saw its lowest level in seven months. Traders use the 0 to 100 Relative Strength Index to determine asset buys and sells. With numbers under 30 indicating oversold positions.
The current RSI reading for Bitcoin has dropped below 30 which shows that the asset may now sell at lower-than-normal prices. Over time Bitcoin has shown strong recovery every time its price approaches highly oversold points.
Bitcoin RSI Drops To Low
The Bitcoin Relative Strength Indicator dropped to the same low in August 2024 which led to a price rise of 33% during the following two weeks from $49,000 to $64,000. When prices recover similar to the past Bitcoin might increase to about $110,000 this time. The Wolf Of All Streets and his team presented a 4-hour RSI chart that shows Bitcoin may experience a rebound shortly.
Bullish divergence with oversold RSI still very much in play. At the moment, RSI still is making a higher low. We need to see a clear “elbow up” on the next candle to confirm. Nothing here yet.
However, some analysts remain cautious. According to analyst Rekt Capital Bitcoin needs to reduce in value more before achieving price stability. The analyst observed that Bitcoin approaches the Chicago Mercantile Exchange (CME) gap between $78,000 and $80,700 from its trading in November of last year.
When BTC closes its price on Friday’s CME market session, it creates a CME gap because the price on Monday’s opening rebound does not match the previous close. These market zones act as potential barriers at both floor and ceiling levels before traders push prices back to normal range recovery.
Industry professionals display different viewpoints about the modern market decline. An industry analyst who previously worked for Glassnode believes that BTC will face a short bear market cycle. According to André Dragosch from Bitwise Research as European Head of Research BTC looks significantly underpriced compared to its market value today.
As a financial wing Standard Chartered Bank predicts that BTC could lose another 10% in market worth. Market analysts expect Bitcoin to perform well over the years ahead despite its temporary market movement. BTC currently holds a value of $84,963 but its price has dropped by 2.4% within a day since this report was created.
