Bitcoin’s weekly relative strength index (RSI) has slipped into the most oversold territory since the cryptocurrency’s price hovered around $15,000, suggesting a potential bottom after a steep 36% decline from its all‑time peak.

What Happened

The RSI, a momentum oscillator that ranges from 0 to 100, fell below 30 on the weekly chart – the conventional threshold for an oversold market – after Bitcoin’s price dropped from $68,000 to roughly $44,000. This drawdown marks the most significant weekly decline since the 2023 low of $15,000.

Why It Matters for Bitcoin

An RSI below 30 often signals that buyers are exhausted and a price reversal could be imminent. Coupled with the Fear & Greed Index at 16 (Extreme Fear), the market sentiment points to a potential support zone forming, which many traders see as a buying opportunity.

Market Impact

Following the RSI dip, Bitcoin’s daily trading volume surged, and the price tested a key resistance level near $45,000. Volatility spiked as investors weighed the risk of further declines against the possibility of a rebound.

What to Watch Next

  • Upcoming U.S. ETF filings that could lift demand.
  • Regulatory updates from major jurisdictions.
  • Short‑term RSI crossovers and MACD signals.
  • Price action around the $45,000 support level.
  • Macro data releases that influence risk appetite.

Start Here

New to Bitcoin? Start here with the BitcoinChurch free guide.

Source

Source: Cointelegraph