Bitcoin’s Potential Bullish Turn Based on RSI

A closely followed crypto analyst suggests that Bitcoin (BTC) may soon turn bullish due to a key indicator.

In a recent post, crypto trader Rekt Capital shared with his 542,500 followers on X that the Relative Strength Index (RSI) may break out of a downtrend, indicating bullish signs for Bitcoin.

> “Going forward, it will be worth watching this daily RSI downtrend for a breakout in the future. This downtrend has been a resistance on the RSI since November 2024. An RSI downtrend break would likely precede a trend reversal to the upside in price.”

In a strategy session with his 107,000 YouTube subscribers, he noted that the RSI bouncing off the oversold level in the 20s range historically leads to a price reversal for Bitcoin.

> “We’ve dropped into a zone of overselling, so below the 30 RSI, that’s typically where we see sellers get a little bit too enthusiastic. People are selling too much, and the sellers are slowly getting exhausted. They are overselling, which means that it’s easier for buyers to step into the market and start buying up prices, and they don’t even need to buy up on high volume.

> And it’s already pressing prices up quite nicely towards the upside without much effort. And that’s exactly what happens when sellers are exhausted. … We’ve seen these oversold regions on quite a few occasions across this cycle. And each time we got here on that first crash, we were very close to a bottom, or we were at a bottom already, and we’d see price reverse towards the upside.”

The analyst also emphasized that Bitcoin’s retracement from the all-time high aligns with historical trends.

> “This current pullback (-29%) is one of the deeper retraces in the cycle but it’s not extraordinary. After all, we’ve seen a deeper retrace in the immediate post-halving period (-32%). Not only that, but we’ve seen deeper pullbacks in previous cycles.

> Major 2021 corrections: -31%, -55%, -25%.

> Major 2017 corrections: -34%, -34%, -38%, -40%, -29%.”

Bitcoin is currently trading at $83,112 with no change on the day.