Bitcoin News Today: Bitcoin RSI Hits 75 as PlanB Signals Months-Long Overbought Bull Run

Bitcoin’s Relative Strength Index (RSI) has entered historically overbought territory, with analyst PlanB suggesting the cryptocurrency could remain in this condition for months. Recent data shows the RSI reached 75 earlier this week, a level historically observed at the onset of extended bullish phases in past cycles. PlanB’s analysis draws parallels to bull runs in 2011, 2013, 2017, and 2021, during which Bitcoin’s RSI frequently exceeded 80 and remained elevated for prolonged periods. At the time of reporting, Bitcoin (BTC USD) traded near $117,400, according to CoinMarketCap, reflecting a 0.25% decline in 24 hours despite increased trading activity [1].

PlanB’s framework, rooted in historical patterns, challenges conventional technical analysis that typically flags RSI above 70 as a correction signal. Instead, the analyst argues that in Bitcoin’s multi-year cycles, overbought conditions often correlate with sustained upward momentum. For example, during the 2017 and 2021 bull markets, Bitcoin’s RSI frequently lingered above 80 for months, coinciding with significant price gains. The current trajectory mirrors these cycles, with PlanB noting that the RSI could surpass 80 again in the coming months, reinforcing the likelihood of a structurally strong rally [2].

Market participants have observed additional factors supporting this view. Traders highlighted overhead liquidity clusters near $118,000 as potential catalysts for short squeezes if resistance levels are breached. Meanwhile, Bitcoin’s 24-hour volatility stood at 0.6%, indicating steady movement despite high trading volumes. However, the reactivation of dormant wallets has introduced uncertainty. A long-silent address containing 3,962 BTC (worth $468 million) was recently moved after 14 years of inactivity. While no coins have been sold to exchanges, the activity has raised concerns about potential sell-offs, particularly as large dormant wallets have been in the spotlight in recent months [3].

The mixed outlook is evident in trader sentiment. Some believe Bitcoin could continue its upward trend, citing historical precedents and liquidity dynamics. Others caution that the rising wedge pattern—a technical indicator suggesting potential trend exhaustion—may trigger short-term corrections. Additionally, former BitMEX CEO Arthur Hayes has forecasted a price target of $250,000 for Bitcoin, attributing this to macroeconomic factors like credit expansion and growing institutional interest [4].

PlanB’s RSI analysis remains a key focal point for market observers. If past cycles repeat, Bitcoin’s current phase could see months of sustained price pressure, aligning with the broader narrative of a maturing digital asset market. However, traders are advised to remain vigilant as overbought conditions, while historically bullish, can also heighten volatility. The interplay between extended momentum and liquidity dynamics will likely define the near-term trajectory, with critical support and resistance levels around $115,000 and $120,000 serving as key indicators for potential reversals [5].

Sources:

[1] [Bitcoin analysis shows RSI signals extended bull market](https://thecurrencyanalytics.com/altcoins/bitcoins-rsi-projected-to-stay-overbought-for-months-suggests-prolonged-bull-run-planb-analysis-187119)

[2] [Bitcoin RSI at 75 Signals Prolonged Overbought Bull Cycle](https://www.ainvest.com/news/bitcoin-news-today-planb-bitcoin-rsi-75-signals-prolonged-overbought-bull-cycle-2507/)

[3] [Bitcoin's Overbought Rally May Extend, PlanB Warns of RSI Trends](https://www.kucoin.com/news/flash/bitcoin-s-overbought-rally-may-extend-planb-warns-of-rsi-trends)

[4] [Unleashing A Prolonged Bull Run, PlanB Predicts Months](https://bitcoinworld.co.in/?p=182196)

[5] [Bitcoin Remains Overbought, PlanB Warns of Extended Rally](https://www.coinspeaker.com/bitcoin-overbought-planb-prediction/)