Bitcoin Plunges from $79.5K Amid RSI Warning and Weekend Reversal
Bitcoin prices took a sharp hit on Saturday, plummeting from $79,500 to around $76,300 after a sudden weekend reversal.
The flash crash was accompanied by an extreme reading on the Relative Strength Index (RSI), which reached its highest level in more than seven years. The four-hour RSI had entered the 80-90 range, indicating that demand can become temporarily exhausted even when a broader uptrend remains intact.
Analysts are watching closely as Bitcoin holds support around $75,000 to $76,000, which could leave room for a move toward $83,000 to $88,000. However, a loss of momentum after the overbought reading could expose the $70,000 to $72,000 area.
Krown noted that the extreme RSI reading was constructive for the longer-term trend but unfavorable in the short term, while CredibleCrypto argued that a pullback could follow if the current upward move is complete. Ted focused on weekly structure, saying, '$BTC is holding above its weekly bull market support band. A weekly close above this zone is needed for more upside in Bitcoin.'