Bitcoin Facing Critical Resistance Where RSI Historically Triggers Selloffs According to Top Analyst – Here’s His Outlook
The price of Bitcoin has seen significant volatility in recent months, swinging between bullish runs and sharp corrections. According to top analyst Ali from X, there are some key technical indicators traders should watch right now to determine if Bitcoin is headed for a correction or breakout.
Specifically, Ali is monitoring the Relative Strength Index (RSI) on the 4-hour Bitcoin chart. The RSI is a momentum indicator that measures the speed and magnitude of recent price changes to assess overbought or oversold conditions. Readings above 70 generally indicate overbought territory, while readings below 30 suggest oversold conditions.
Ali notes that since mid-April, each time the 4-hour RSI has hit 73.31, Bitcoin’s price has subsequently retreated. As of writing, Bitcoin’s RSI is approaching this level again as BTC nears a descending resistance trendline around $27,440. If history repeats, hitting the 73.31 RSI could trigger another pullback.
According to Ali, a correction from current levels could take Bitcoin down to around $25,200 or lower. This would present a potential “buy the dip” opportunity for traders looking to accumulate more BTC at discounted prices. However, traders need to watch out for a 4-hour candlestick close above $27,440, which could signal the bull run is resuming.
In summary, Bitcoin is approaching a critical technical juncture. Key levels to watch are the 73.31 RSI level on shorter timeframes for signs of overbought conditions, and the $27,440 resistance trendline for a breakout. Traders can prepare for both possibilities, either a correction to accumulate more BTC or a sustained breakout indicating the bull market is back on. Paying close attention to these indicators over the coming days and weeks will be crucial.
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