Bitcoin’s correction may be temporary, with key support zones at $71,736.8-$79,743.0 potentially setting the stage for a rebound.
Bitcoin’s RSI is at 75, below the 92 threshold, indicating possible correction but not extreme overbought conditions yet.
A breakout above $89,584 could trigger bullish momentum, while rejection there may signal a deeper retracement.
Bitcoin's price action is currently experiencing a correction, influenced by the recent Tether (USDT) FUD, according to Michaël van de Poppe. He emphasizes that this pullback could be temporary, with the potential for an upward rotation once liquidity has been absorbed. Van de Poppe highlights key support and resistance zones on BTC/USDT, indicating crucial price levels to watch for the next moves.
Key Support and Resistance Levels
Van de Poppe identifies a support zone ranging from $71,736.8 to $79,743.0. This level is a consolidation phase before a previous breakout, making it a critical demand area. If Bitcoin’s price holds above this range, a bounce could occur, potentially leading to a retest of the next resistance at $85,327.6 to $89,584.4. A rejection here, however, could signal a shift toward bearish sentiment, while a break above could fuel renewed bullish momentum.
Bitcoin’s recent retracement from a local high of $99,993.7 signals weakness in the short term. The series of lower highs and lower lows reinforces this sentiment. Moreover, the RSI indicator, showing a declining trend, suggests that bearish momentum might persist soon. On the other hand, decreasing volume during the current pullback suggests a potential reversal or consolidation, especially near the identified support levels.
RSI and Bitcoin’s Market Sentiment
Ali’s analysis discusses Bitcoin's monthly RSI behavior. Historically, every Bitcoin bear market began when the RSI hit 92. Currently, the RSI sits at 75, still below the overbought threshold of 92. This suggests that Bitcoin could face a market correction, but not yet at an extreme level.
Ali highlights Bitcoin's past cycles, where the price surged following oversold RSI conditions. However, the price was corrected once the RSI exceeded 90. In the 2013, 2017, and 2021 cycles the RSI was a reliable indicator of market reversals. Although Bitcoin has not yet been overbought, it is crucial to keep an eye on this since the current RSI is approaching 70.
