Bitcoin (BTC) Price Prediction: Weekly RSI Hits Oversold Levels for the First Time in Years

Bitcoin is currently trading around the $69,000 mark and seems to be gaining some momentum on lower timeframes. As highlighted in our previous analysis, Bitcoin was looking extremely bearish after flipping the $80,000 mark into resistance and was struggling to hold the support around $74,500. This sell-off was further escalated as bears took complete control, resulting in a flash crash that pushed Bitcoin as low as $60,000. Given that macro indicators have been sitting in strong bearish territory, this move was expected. However, it appears the bears are reaching a limit for the time being, and we can expect some consolidation or even a relief bounce for Bitcoin in the coming days or weeks. Let’s now take a quick look at the latest charts to see where the price could be headed next.

Our Bitcoin Price Prediction Summary

• Bitcoin found support at $60,000 after a week of panic selling but it now faces heavy resistance between $72,000 and $74,500.
• The weekly RSI is oversold for the first time in years which suggests the current bearish momentum might be slowing down for a relief rally.
• The macro-outlook stays bearish because the price is still trading below the 50-week EMA and the long-term bearish divergence is still active.

Analyzing the Charts

Price Recovery Stalls Below $72,000

The 1-day chart highlights the intensity of the recent crash, which saw Bitcoin tumble from $88,000 down to the $60,000 mark in just one week. This rapid decline triggered widespread market panic, with altcoins following suit as BTC plummeted. While Bitcoin found temporary support at $74,500 after losing the $80,000 level, that floor was short-lived before a flash crash sent the price to $60,000. Currently, we are monitoring the $72,000 to $74,500 zone, which has now flipped into a significant resistance area. On the downside, the $60,000 mark remains the primary support level we are eyeing.

RSI Signals Bearish Exhaustion

Another important detail on the 1-day timeframe is the RSI. The indicator currently signals that bears are exhausted, as the price has reached oversold levels. This exhaustion explains why the price bounced back rapidly from the $60,000 support and is now attempting to break above the $72,000 to $74,500 resistance zone. This suggests we can expect consolidation for Bitcoin in the immediate short term as bulls try to regain control. A break above the $72,000 to $74,500 range is also possible and could provide a much-needed relief rally for the market.

Weekly Outlook and Oversold Signals

Lastly, switching to the 1-week timeframe, the macro picture remains largely unchanged. The bearish divergence we have highlighted for months is still intact and continues to play out. Furthermore, the price is still trading below the 50-week EMA, which historically keeps the broader outlook firmly in the bearish camp.

However, there is one crucial change to note. The weekly RSI has dipped into oversold territory for the first time in years. This is a significant development that could signal bearish exhaustion, potentially allowing bulls to regain some control in the coming days or weeks. It is important to emphasize that this does not necessarily mean the price has bottomed. Our overall Bitcoin price prediction still leans toward the bearish side unless we see a major reversal indicator.

Final Takeaway: What is Next for Bitcoin?

Bitcoin has found temporary relief at the $60,000 mark after a massive crash from $88,000 area. While the 1-day and 1-week RSI indicators both suggest that sellers are exhausted, the overall trend remains bearish as long as the price stays below the 50-week EMA. The primary goal for bulls now is to break through the $72,000 to $74,500 resistance zone to confirm a short relief rally. Failure to reclaim these levels would suggest that the current bounce is merely a pause and the correction could extend further in the coming days.