According to ChainCatcher news, as reported by Cointelegraph, traders expect Bitcoin to potentially rebound in the short term, with data showing that the BTC/USD relative strength index (RSI) is in an extremely 'oversold' condition, having fallen to its lowest level in nearly three years.
Bitcoin has fallen 36% from its historical peak of $126,000 to $80,500, which has had a significant impact on the high-timeframe RSI indicator. On the weekly chart, the RSI has dropped from a local high of 64 in September to its current level of 35, a level last seen in January 2023 when Bitcoin was trading around $15,500-$17,000.
Analyst Jelle stated: "Historically, when the weekly RSI reaches this level, it is worth paying attention to." He added: "Either we are close to the bottom, or we will soon experience a larger downward move." Mister Crypto pointed out in a post on X on Friday that Bitcoin's Stochastic RSI shows its oversold level is the deepest it has been throughout the entire cycle, "indicating a very high likelihood of a short-term rebound."
