Bitcoin's RSI Breaks Above 85, Historically a Sign of New Uptrend

Bitcoin's daily relative strength index (RSI) has broken above 85 for the first time in what appears to be a new uptrend. According to analyst Sykodelic, this level has never been reached during a bear market in Bitcoin's 10-year price history.

The current rally is being compared to the one that started in November 2024, when BTC also pushed above $81,000 and its daily RSI exceeded 85. The pattern described by Sykodelic involves vertical accumulation, where the price moves into overbought territory and then works through resistance without large pullbacks.

Derivatives activity has also picked up, with Bitcoin open interest on Binance reaching $9.54 billion, its highest level in three months. This increase in open interest could be a sign of growing confidence in the bullish trend, but it also raises concerns about liquidation risk if BTC reverses.

For now, the Bull-Cycle case still needs confirmation from CryptoQuant, which requires a daily close above Bitcoin's 365-day moving average near $83,000. While spot and futures demand have both risen, this indicator is still cautious in its assessment of the market.