Bitcoin RSI Rebounds From Rare Single-Digit Lows

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Key points:

  • Bitcoin market upheaval continues as Galaxy Digital moves thousands of BTC to exchanges.

  • RSI values collapse to rare lows before printing bullish divergences with price.

  • $117,000 emerges as an important BTC price upside target.

Bitcoin (BTC) is showing signs of recovery after โ€œoversoldโ€ conditions hit rare lows Friday.

BTC/USD 1-hour chart. Source: Cointelegraph/TradingView

Bitcoin RSI rout underscores Galaxy Digital nerves

Data from Cointelegraph Markets Pro and TradingView shows bullish divergences creeping in on the relative strength index (RSI) for BTC/USD.

Bitcoin briefly dropped below $114,600 amid the ongoing distribution of thousands of BTC to exchanges by Galaxy Digital.ย 

The event saw mass liquidations of over $500 million in 24 hours, and forms the latest chapter in the story of roughly 80,000 BTC, which last moved onchain 14 years ago.

โ€œThe Bitcoin price has stalled ever since those coins started moving,โ€ popular trader Daan Crypto Trades observed in part of ongoing X commentary.

BTC/USDT perpetual contract 2-hour chart. Source: Daan Crypto Trades/X

With the market still in flux, preliminary signals are nonetheless emerging from chart data. RSI, which collapsed to just 6/100 on 15-minute timeframes during the first phase of the sell-off, is already printing higher lows while price makes lower lows.

โ€œI have never seen $btc this oversold. Never. This is beyond oversold,โ€ fellow trading account Crypto Analyst added on the data.

BTC/USD 15-minute chart with RSI data. Source: Cointelegraph/TradingView

The hourly chart continues to hover around the 30/100 โ€œoversoldโ€ barrier, tentatively offering higher lows.

โ€Time to watchโ€ for BTC traders

Continuing, popular trader Skew had some potential good news for bulls. Mass capitulation, he noted, had not yet appeared, potentially aiding the rebound.

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โ€œI see the current state of the market as cautionary more than panic,โ€ he told X followers.

โ€œPanic often has volume & considerable volatility which we dont have currently. Time to watch for sure though.โ€ย 

Skew suggested that market absorption of the spot supply is a key factor in halting the bleed, adding that $117,000 is now an important target.

The latest data from monitoring resource CoinGlass shows bid support in place at $114,500, with a cloud of asks overhead extending up to $118,500.

BTC liquidation heatmap (screenshot). Source: CoinGlass

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.