Bitcoin’s Relative Strength Index (RSI) is showing a critical pattern that could determine BTC’s next major price move, as the leading cryptocurrency tests key support levels around $84,000. Technical analyst Rekt Capital has identified striking similarities between current RSI readings and patterns that preceded Bitcoin’s rally to $100,000 in late 2024.
Critical RSI Pattern Emerges as Bitcoin Tests Support
According to Rekt Capital’s analysis shared on X (formerly Twitter), Bitcoin’s daily RSI is approaching a crucial retest of the downtrend line that dates back to November 2024. This technical development gains significance as recent PCE inflation data has sparked increased market volatility, pushing BTC below the $84,000 mark.
Market Implications and Technical Analysis
The RSI indicator currently sits at a critical 40 level, with analysts closely watching for either a breakdown or successful support test. A break below could trigger renewed selling pressure, while holding above may signal continuation of the broader uptrend that took Bitcoin to new highs following Trump’s election victory.
Macro Factors Weighing on Bitcoin
Several macro developments are influencing Bitcoin’s price action:
- Trump’s new tariff policies creating market uncertainty
- Federal Reserve’s quantitative tightening stance
- Higher-than-expected PCE inflation readings
Expert Price Predictions
Multiple analysts have weighed in with varying predictions:
- Titan of Crypto: Potential rally to $91,400 based on bullish pennant formation
- Peter Brandt: Bearish outlook with possible drop to $65,635
- QCP Capital: Limited short-term upside until trade policy clarity
FAQ Section
What is the significance of the RSI retest?
The RSI retest of the November 2024 downtrend line could determine Bitcoin’s next major price movement, with the 40 level serving as a crucial support zone.
How does the current market compare to November 2024?
While similar RSI patterns are present, current macro headwinds including inflation concerns and policy uncertainty create a more challenging environment.
What are the key support levels to watch?
The monthly Tenkan and Fair Value Gap midline serve as critical support zones, with $84,000 acting as immediate psychological support.
At time of writing, Bitcoin trades at $83,900, down 2% over 24 hours as markets digest the latest macro developments and technical signals.