- Bitcoin may find support around $70,000 before bouncing back, according to RSI analysis by trader Rekt Capital.
- Historical patterns suggest BTC could dip between -0.32% and -8.44% below initial RSI bottoms, with the latter scenario pointing to the $70,000 level.
- Weekly RSI is at 43, its lowest reading since early 2023, while U.S. macroeconomic trends could add further downward pressure on Bitcoin’s price.
Bitcoin may experience a correction down to $70,000 before resuming its upward trajectory, according to technical analysis shared by popular trader Rekt Capital on April 7. This potential price floor coincides with previous all-time highs from 2021, suggesting historical support at this level.
In his X analysis, Rekt Capital examined the relative strength index (RSI) to calculate how deep Bitcoin’s current correction might go. "Whenever Bitcoin’s Daily RSI crashed into the sub-28 RSI levels – that wouldn’t necessarily mark out the price bottom. In fact, historically, the actual price bottom would be -0.32% to -8.44% lower than the price when the RSI first bottomed," he explained.
RSI Analysis Points to $70,000 Support
The analyst noted that Bitcoin is "currently forming its second low -2.79% below the first low," adding that a repeat of the historical -8.44% pattern "would see price bottom at ~$70000." This target aligns with significant technical and psychological levels from previous market cycles.
RSI is a leading indicator that often signals major Bitcoin Price reversals before they occur. Currently, the daily RSI is around 38, having been rejected at the 50 level. Meanwhile, the weekly RSI sits at 43 – its lowest reading since the bull market began in early 2023, according to data from Cointelegraph Markets Pro and TradingView.
Rekt Capital added that "historical Daily RSI trends in this cycle suggest anything from current prices to ~$70000 is likely to be the bottom on this correction." Bitcoin last traded at $70,000 in November 2024, a level that represents the previous bull market’s peak from three years earlier.
Macroeconomic Headwinds for Bitcoin
The $70,000 target aligns with other technical tools, including the Lowest Price Forward metric, which gives high odds of that area holding as support. However, network economist Timothy Peterson, who created this metric, remains cautious about Bitcoin’s short-term outlook.
Peterson warned that U.S. macroeconomic trends could "easily" push BTC/USD down to the $70,000 mark. Alongside a chart of the ICE BofA US High Yield, he stated these conditions were "seriously bad for Bitcoin."
Investors are advised to conduct their own research when making decisions, as this analysis does not constitute investment advice or recommendations.
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