Bitcoin News Today: Bitcoin RSI Hits Historic Lows as Galaxy Digital Sells 80,000 BTC, Triggering $500M Liquidations

Bitcoin faces intensified selling pressure as Galaxy Digital offloads approximately 80,000 BTC, sparking a market-wide sell-off. This mass transfer, involving BTC that had been dormant for over a decade, triggered over $500 million in liquidations within 24 hours, exacerbating downward momentum for the asset [1]. The relative strength index (RSI), a critical momentum gauge, has plummeted to historic lows—single-digit levels on short timeframes—highlighting an extreme oversold condition. Such readings often signal waning selling exhaustion, potentially foreshadowing a stabilization or correction phase [1].

Technical indicators, however, suggest a nuanced outlook. While Bitcoin’s price continues to form lower lows, the RSI has begun to exhibit higher lows, a bullish divergence that may indicate diminishing downward momentum. Analysts note the rarity of such oversold conditions without subsequent price rebounds, underscoring the importance of monitoring RSI trends as a potential barometer for reversals [1]. The $117,000 level has emerged as a pivotal resistance target, with bid support currently consolidating around $114,500. A surge past $117,000 could validate a short-term recovery, though the presence of significant ask orders up to $118,500 highlights a defined trading range where market participants remain active [1].

Market sentiment remains cautiously watchful, with traders noting the absence of panic-driven metrics like extreme volatility spikes or uncharacteristic volume surges. This suggests that while selling pressure persists, capitulation levels have not yet been reached. The ability of the spot market to absorb the distribution from Galaxy Digital’s transfers will be a key determinant in whether prices stabilize or face further downward revisions. Observers emphasize that the interplay between sustained selling and market absorption will likely dictate near-term dynamics [1].

For traders, the current environment demands a measured approach. Technical tools like RSI and volume metrics can provide actionable insights for timing entries and exits, while liquidation heatmaps and order book depth offer additional context on liquidity and support zones. However, the potential for a rebound should not overshadow the risks posed by continued large-scale BTC movements. Investors are advised to balance opportunistic strategies with disciplined risk management, leveraging both technical and fundamental signals to navigate the volatile landscape [1].

The trajectory of Bitcoin’s price action hinges on the resolution of this short-term tension between distribution and absorption. A sustained rally toward $117,000 would validate the RSI’s bearish exhaustion signal, while further consolidation or renewed selling could delay recovery prospects. Traders will likely remain anchored to key price levels and technical divergences, awaiting clarity on whether the current correction represents a cyclical bottoming process or a deeper retracement.

Source: [1] [Bitcoin RSI Signals Potential Recovery Amid Galaxy Digital BTC Sell-Off and Market Volatility July 25, 2025] [https://en.coinotag.com/bitcoin-rsi-signals-potential-recovery-amid-galaxy-digital-btc-sell-off-and-market-volatility/]