Bitcoin News Today: Bitcoin RSI nears 75 signaling potential overbought conditions and $170000 price target

Bitcoin’s monthly Relative Strength Index (RSI) is nearing 75, a key technical indicator signaling extended bullish momentum in the market. This development has drawn attention from analysts and traders who closely monitor RSI levels to assess potential price corrections or continued upward trends. The RSI, which measures the speed and change of price movements, typically signals overbought conditions when it exceeds 70, while values near or above 80 often suggest a possible pullback [1].

PlanB, the architect of the stock-to-flow (S2F) model, highlighted Bitcoin’s RSI level in a recent analysis, noting that the indicator is approaching a historically significant threshold. According to the analysis, Bitcoin’s RSI at 75 has often aligned with strong bullish cycles in the past. If the RSI were to surpass 80, it could indicate a correction ahead, yet if the level holds, some analysts suggest the price could climb as high as $170,000 in this cycle [1].

The recent momentum has pushed Bitcoin beyond key valuation benchmarks, including surpassing Alphabet (Google’s parent company) in market capitalization. Additionally, Bitcoin has outpaced gold on a year-to-date basis, further illustrating its growing dominance as a store of value. Polymarket traders have priced in a 46% probability that Bitcoin could reach $130,000 by the end of August [1].

From a technical standpoint, the RSI at 75 appears to be a critical juncture. A number of market observers have pointed to this level as a warning sign of an overbought condition, though whether this leads to a correction or a continuation of the bullish trend remains to be seen. The RSI is being closely watched alongside other indicators, such as Bitcoin’s price action near $125,000 and the strength of institutional buying [2].

In related technical analysis, the RSI reached 75 in late July and early August, with some traders noting that the indicator is extending bullish momentum despite traditionally signaling a potential overbought correction at the 80 threshold [3]. The MACD has also turned positive, maintaining a bullish bias, while volume remains robust, reinforcing the strength of the current price trend [4].

However, the market is not entirely consensus-driven. Some traders caution that while the RSI suggests strength, any significant negative news or a break below key support levels could trigger a short-term pullback. Analysts suggest that investors remain cautious, particularly if the RSI moves beyond 80, as this could indicate a shift in market sentiment [5].

Despite these potential risks, the broader market structure remains bullish. The crypto market has held above a critical $4.01T support level, and if this holds, the next upside target is $4.07T [6]. The continued influx into Bitcoin ETFs and the anticipation of Fed rate cuts have also contributed to the bullish sentiment. Institutional interest is particularly notable, with ETF inflows and large-scale buying continuing to drive price action.

The RSI’s current level is thus not only a technical marker but a psychological one, influencing both retail and institutional traders in their decision-making. As the market continues to test key resistance levels, the RSI will remain a key tool for gauging whether the current bull cycle is gaining or losing steam.

Source:

[1] title: Bitcoin Price to $170000? Is Potential RSI Roadblock in View

url: https://u.today/bitcoin-price-to-170000-is-potential-rsi-roadblock-in-view

[2] title: BTC/USD Forex Signal: Bitcoin Gains Momentum

url: https://www.dailyforex.com/forex-technical-analysis/2025/08/btcusd-forex-signal-august-14-2025/232679

[3] title: Eastern's 15-min chart shows RSI overbought and ...

url: https://www.ainvest.com/news/eastern-15-min-chart-shows-rsi-overbought-narrowing-bollinger-bands-2508/

[4] title: Coin98 Market Overview

url: https://www.ainvest.com/news/coin98-market-overview-2508/

[5] title: ARK Invest scoops $172M in Bullish shares as stock soars ...

url: https://www.interactivecrypto.com/ark-invest-scoops-172m-in-bullish-shares-as-stock-soars-84-on-debut

[6] title: When Will the Crypto Market Bull Run Begin in 2025?

url: https://coindcx.com/blog/crypto-deep-dives/crypto-bull-run-2025/