Crypto analyst Rekt Capital recently addressed the recent Bitcoin price movements and shared his thoughts on the potential future direction of the leading cryptocurrency. He specifically referenced BTC’s RSI, which appears to be following a similar trend to last year, just prior to a surge to new all-time highs.
Bitcoin’s RSI Aiming for Daily Retest That Initiated the 2024 Price Surge
In a post on X, Rekt Capital indicated that Bitcoin’s RSI is aiming for a daily retest that sparked the price rally in 2024. He pointed out that last week the daily RSI successfully conducted a post-breakout retest of the RSI downtrend, originating from November 2024, thereby confirming the breakout. He further noted that the RSI is now poised for another test of that same downtrend.
The Bitcoin price reached $100,000 in November 2024 following Donald Trump’s win in the US presidential elections. Rekt Capital’s accompanying chart illustrated that the RSI is retesting the 40 mark, with a drop below this threshold possibly triggering another downturn for the leading cryptocurrency. Conversely, if the RSI maintains levels above this point, it could initiate a new upward trend for BTC, propelling its price to new highs.
At present, however, the Bitcoin price seems likely to undergo a significant correction, having fallen from its weekly peak of approximately $88,500 to below $84,000 on Friday. Macro factors, such as Donald Trump’s tariffs and the US Federal Reserve’s quantitative tightening measures, are dampening the bullish momentum of the leading cryptocurrency.
Trading firm QCP Capital expressed that any short-term gains for the Bitcoin price may be limited as markets await clarity regarding Trump’s upcoming actions in the intensifying trade war. Additionally, the release of PCE inflation data on Friday has contributed to a bearish sentiment for BTC as the core index exceeded expectations.
BTC May Establish a Local Bottom at the Current Price Point
Crypto analyst Titan of Crypto suggested that Bitcoin’s price could establish a local bottom at its current price level. He observed that BTC continues to hold above a significant confluence of support levels, including the monthly Tenkan and the midline of the monthly Fair Value Gap. The analyst noted that the last two instances where BTC maintained these supports coincided with local bottom formations.
Previously, Titan of Crypto entertained the notion of Bitcoin’s price rallying to $91,000 imminently. He noted that a bullish pennant has developed on the 4-hour chart, and if this pattern breaks to the upside, the potential BTC target is around $91,400. Meanwhile, renowned trader Peter Brandt appears bearish, having recently forecasted that BTC could decline as low as $65,635.
As of this writing, the Bitcoin price is hovering around $83,900, showing a decline of over 2% in the last 24 hours, according to data from CoinMarketCap.
