Is Bitcoin Ready for a Rebound? Key Indicator Suggests a Breakout

A well-known crypto analyst suggests that Bitcoin could be on the verge of a bullish reversal, citing a key technical signal.

Rekt Capital highlights Bitcoin’s Relative Strength Index (RSI), a momentum gauge that tracks overbought and oversold conditions, noting that a breakout from its current downtrend could signal a shift in market sentiment.

He points out that Bitcoin’s RSI has been in decline since November 2024, but if it moves past this resistance, it could indicate an upward price movement.

Historically, RSI reaching oversold levels has often led to market turnarounds, suggesting that sellers may be losing momentum, allowing buyers to regain control with minimal effort.

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Addressing Bitcoin’s recent correction, the analyst downplays concerns, explaining that its current 29% pullback is not unusual when compared to past cycles.

He notes that similar declines occurred after previous halvings and during major corrections in 2017 and 2021, some of which were even steeper. Based on these patterns, he believes Bitcoin’s recent downturn fits within historical trends, implying that another upward phase may be ahead.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.