Bitcoin Recovers Above Critical $65K Support After RSI Neared Record Low

[Forum Admin]

Bitcoin Recovers Above Critical $65K Support After RSI Neared Record Low.

 

One of the most important market events this week was Bitcoin's plunge into unprecedented oversold territory, with the weekly RSI dropping below 26 (reaching historic lows around 25.6 on Bitstamp data), marking its lowest level since inception and surpassing even the extreme bear market bottoms of 2015, 2018, and 2022. 

This extreme technical capitulation signal, combined with the decisive break below the long-term holder (LTH) cost basis distribution heatmap level around $65,000 (a key support flagged in last week's analysis), has accelerated the correction and points to potential further extension toward the broader Realized Price near $54,000–$55,000, per Glassnode’s analysis.

Adding to the mix, Bitcoin’s monthly Bollinger Bands are now the tightest they’ve ever been, warning investors to expect heightened volatility.

For traders, the historic weekly RSI extreme (<26) has historically signaled major exhaustion and potential mean-reversion opportunities (as seen post-2015/2018/2022 lows), but current macro headwinds suggest there may be more pain ahead if the geopolitical landscape deteriorates further and price expands bearishly from the constricting Bollinger Bands.

$60,000 now stands as the next major psychological zone (dense demand from 2024 accumulation), with overhead resistance at $65,000–$68,000. 

Traders may find it prudent to prioritize patience until a clear RSI divergence emerges or macro catalysts improve.
 

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