Bitcoin's Weekly RSI Hits New Low, Price May Bottom at $70,000

Coin WorldTuesday, Apr 8, 2025 4:22 pm ET
2min read

Bitcoin (BTC) has seen a notable shift in its market dynamics, with its weekly Relative Strength Index (RSI) hitting a new low for the current bull market. This development has sparked discussions among traders and analysts about the potential future price movements of the cryptocurrency.

According to a recent analysis by Rekt Capital, a popular trader and analyst, Bitcoin's price could find its floor near the old all-time highs from 2021, which is around $70,000. This prediction is based on historical data and the current market conditions. Rekt Capital used the RSI indicator to calculate the potential downside for BTC, noting that historically, the actual price bottom has been -0.32% to -8.44% lower than the price when the RSI first bottomed. Given that Bitcoin is currently forming its second low at -2.79% below the first low, a repeat of the historical -8.44% drop would see the price bottom at approximately $70,000.

The RSI is a leading indicator that often precedes major price trend changes. Currently, the daily RSI measures around 38, having rejected at 50. On the weekly chart, the RSI is at 43, marking its lowest reading since the start of the bull market in early 2023. This indicates that Bitcoin's momentum is slowing down, which is a red flag for traders. However, Rekt Capital also noted that the price need not extend to $70,000 in order for a long-term bottom to form. Historical daily RSI trends in this cycle suggest that anything from current prices to around $70,000 is likely to be the bottom on this correction.

The $70,000 price level is significant as it was the last trading price of BTC/USD in early November 2024 and is also known as the all-time high from Bitcoin’s previous bull market which ended three years prior. This level has been identified as a popular target for the current correction, with tools such as the Lowest Price Forward metric giving high odds of that area holding as support.

However, network economist Timothy Peterson remains downbeat about the short-term BTC price outlook. He warned that US macroeconomic trends could "easily" send BTC/USD to the $70,000 mark, describing the current macro trend as "seriously bad for Bitcoin." This sentiment underscores the broader economic factors that could influence Bitcoin's price movements in the near future.

In summary, the current market conditions for Bitcoin are marked by a significant drop in its weekly RSI, indicating a potential shift in market dynamics. While some analysts predict that Bitcoin's price could bottom out at around $70,000, the overall outlook remains uncertain. Traders and analysts are closely monitoring the situation, looking for potential opportunities in the rapidly adjusting market. The $70,000 price level holds historical significance and is seen as a key support level, but broader economic factors could also play a role in determining Bitcoin's future price movements.