Bitcoin (BTC) Price Prediction: Can Oversold Conditions Spark a Recovery?

Bitcoin is currently trading around the $67,000 level as it attempts to build momentum on lower timeframes. As we highlighted in our previous analysis, BTC managed to bounce from the $60,000 support zone following last week's flash crash, but the recovery has been met with resistance as price struggles to reclaim the $70,000 psychological threshold. The past few weeks have brought accelerated selling pressure across the broader crypto market, with Bitcoin experiencing several sharp corrections that have tested investor sentiment. While there are early signs that bearish momentum may be losing steam, the ongoing volatility in US equities presents an additional headwind that could influence short-term price action. In this analysis, we will analyze the latest Bitcoin charts to see where the price could be headed in coming days. Let’s take a look:

Our Bitcoin Price Prediction Summary

• Bitcoin bounced from $60,000 but faced rejection at the $71,000 to $74,500 resistance zone, with consolidation likely in the near term.
• The macro-outlook remains bearish with price below the 50-EMA and bearish divergence still active.
• Weekly RSI has entered oversold territory for the first time in years, hinting potential short-term relief ahead.

Analyzing the Charts

Rejection at Key Resistance

Looking at the 1-day chart, Bitcoin's bounce from the $60,000 support level led to a retest of the $71,000 to $74,500 resistance zone that we identified in our previous analysis. However, the price has faced rejection at this upper boundary and is now showing signs of weakness as momentum fades. Since the flash crash, bulls have yet to mount a significant counteroffensive, and the overall structure remains fragile. In the near term, we anticipate Bitcoin will likely enter a consolidation phase, with both the $60,000 support and $71,000 resistance zone remaining in play as the market digests recent volatility. The RSI has climbed from oversold levels but still hovers in the lower range, suggesting there may be room for additional relief before any sustained directional move takes shape.

Price Action Hints at Sideways Movement

Zooming into the 4-hour timeframe provides additional clarity on the developing structure. After establishing the $71,000 zone as resistance, Bitcoin has begun trending lower and is now approaching the $65,000 level where immediate support is expected. This area could serve as a liquidity zone where buyers step in to defend the range. With price action appearing range-bound, we expect Bitcoin to oscillate between $65,000 support and the $71,000 to $74,500 resistance zone in the immediate short term. A breakdown below $65,000 would not necessarily invalidate this consolidation scenario, as the $60,000 level remains a strong support that would likely attract renewed buying interest.

Macro Outlook Remains Bearish Despite Oversold Signals

Looking at the bigger picture, not much has changed on the macro front. The bearish divergence we have been tracking for months is still playing out, and Bitcoin remains below the 50-EMA on higher timeframes. This is why our current Bitcoin price prediction maintains a bearish bias. However, there is one notable development worth watching. The weekly RSI has dropped into oversold territory for the first time in years. This kind of extreme reading has historically led to periods of relief, so we could see a few weeks of stabilization or even a bounce from here. That said, the broader structure is still weak, and how Bitcoin responds over the next few weeks will tell us whether this is just temporary relief or the start of something more substantial.

Final Takeaway: What is Next for Bitcoin?

Bitcoin remains in a challenging position as it struggles to break above the $71,000 resistance zone following last week's bounce from $60,000. The short-term outlook points toward consolidation, with price likely to trade between $60,000 support and the $71,000 to $74,500 resistance range as the market digests recent volatility. On the macro front, the bearish structure remains intact with Bitcoin still trading below key moving average and the bearish divergence we have been tracking for months continuing to play out. However, the weekly RSI sitting in oversold territory for the first time in years suggests we may see some relief in the coming weeks. For now, patience is key as we wait to see whether bulls can gain traction or if the broader downtrend continues to dominate price action.