Bitcoin Plummets to $76K as RSI Hits Seven-Year Extreme

Bitcoin's recent surge came to an abrupt end over the weekend as it plummeted from around $79,500 to approximately $76,300. This sudden reversal occurred despite Bitcoin's earlier gain of more than 22% in a week, leaving momentum indicators at unusually high levels.

The four-hour relative strength index (RSI) reached its highest level in over seven years, with readings above 70 generally considered overbought. The indicator moved into the 80-90 range, where demand can become temporarily exhausted even when a broader uptrend remains intact.

Traders are watching for support around $75,000 to $76,000, which could leave room for a move toward $83,000 to $88,000. However, if momentum after the overbought reading falters, it may expose the $70,000 to $72,000 area.

Krown noted that the extreme RSI reading is constructive for the longer-term trend but unfavorable in the short term, while CredibleCrypto argued that a pullback could follow if the current upward move is complete. Analysts are divided on whether this expansion is near its peak or not.