A key technical indicator, the Relative Strength Index (RSI), is flashing signs of a possible price bottom for Bitcoin (BTC). This has traders’ attention once again. As of right now, the price of Bitcoin is around $76,368. A well-known economist at Rekt Capital says the cryptocurrency giant could drop back to $70,000, like how prices have moved during previous bull cycles. The weekly RSI is at its lowest level since early 2023, which is why many people see this drop as a possible start for a bullish comeback.
RSI Warns: Lowest Weekly Level Since 2023
The leading momentum indicator RSI is at 43 on the weekly chart right now, which is the lowest level since the bull market’s start in 2023. If you look at the daily chart, the RSI is at 38, having refused the midpoint level of 50. Even though this drop suggests that momentum is slowing, the price is still above the critical “oversold” level of 30. When the daily RSI falls below 28, Bitcoin tends to bottom between 0.32% and 8.44% lower than the RSI’s first low. This means that BTC could bottom anywhere from where it is now to $70,000.
Historical Patterns Support $70K as a Strong Reversal Zone
Rekt Capital points out that the current structure of the RSI looks a lot like previous drops, such as when BTC made two RSI lows before turning around. Presently, BTC is making its second low, which is -2.79% below the first one. This is a trend that matches previous cycles. A full -8.44% drop from the first RSI low would put Bitcoin at $70,000, also the peak of the 2021 bull run. Technical and psychological support could make $70,000 the cycle floor.
Still, macro pressures weigh on BTC
Technical support is building nearly $70K, but the overall economy could put more pressure on Bitcoin. An economist named Timothy Peterson said that rising U.S. high-yield bond spreads are bad for risky investments like Bitcoin.
Conclusion
Many analysts agree that a return to $70,000 doesn’t mean the end of the world but rather a healthy correction within a bigger bull market. If BTC stays stable around this level, the price will increase again.
