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Traders expect Bitcoin may rebound in the short term, with the RSI indicator currently in an extremely «oversold» state

Traders expect Bitcoin may rebound in the short term, with the RSI indicator currently in an extremely «oversold» state

2025-12-19 21:24

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ChainThink News, December 19: According to Cointelegraph, traders anticipate a potential short-term rebound for Bitcoin, as data shows the Relative Strength Index (RSI) for BTC/USD is in an extreme "oversold" condition, having dropped to its lowest level in nearly three years.


Bitcoin has declined 36% from its all-time high of $126,000 to $80,500, significantly impacting the high-timeframe RSI indicator. On the weekly chart, RSI has fallen from a local peak 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 weekly RSI reaches this level, it warrants attention." He added: "Either we are nearing a bottom, or a more substantial downward move is imminent."


Mister Crypto noted in an X post on Friday that Bitcoin’s Stochastic RSI indicates the deepest oversold condition across the entire cycle, suggesting "a very high probability of a short-term rebound."

#Bitcoin

Disclaimer: Contains third-party opinions, does not constitute financial advice

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