Bitcoin Nears a Risk Zone as RSI Hits Extreme Levels: Back to $70,000?
Bitcoin traded near $77,260 on Saturday, according to market data, after reaching an intraday high close to $79,500 before a sudden flash crash rattled the market.
The asset climbed more than 22% over the past week, but a technical signal is starting to raise caution among traders.
What the RSI Shows and Why It Matters
The relative strength index (RSI) measures price momentum on a scale of 0 to 100 and is considered overbought above 70. On the 4-hour chart, the indicator now sits at its highest level in more than seven years.
Analyst Krown noted early Saturday that this RSI extreme is good for the long term, but not for the short term. Readings above 80-90 reflect temporary exhaustion of demand.
Historically, those levels tend to precede short-term corrections or consolidations, though they do not necessarily mark the end of an uptrend.
โฆ Continue reading the full article at the original source below.
