The analyst, known as Rekt Capital, highlighted a key indicator showing bullish momentum for Bitcoin.
Analyst Rekt Capital, known for his technical analysis on Bitcoin, highlighted a key indicator showing bullish momentum for the cryptocurrency.
In a recent X post, rekt pointed to the Relative Strength Index (RSI) as a crucial signal. The RSI, a tool used to gauge whether an asset is overbought or oversold, is now breaking free from a prolonged downtrend, which could indicate that Bitcoin may be gearing up for a price surge.
The RSI typically ranges from 0 to 100, with readings above 70 indicating overbought conditions and those below 30 signaling oversold territory. According to Rekt Capital, the RSI has been on a daily downtrend since mid-November 2024.
However, as seen in the chart above, this RSI has finally broken out of its downtrend. This could be an early indication that strength is returning to Bitcoin.
As the RSI seems set to enter a new uptrend after months of down trends, this could be an early indication that some relative strength is finally returning to Bitcoin.
Moreover, the analyst anticipates Bitcoin to break through the $88,500 resistance shortly. Once this occurs, he predicts that BTC could move closer to reclaiming the $100,000 range, returning to a more favorable market environment.
While some label the current phase as a bear market, Rekt Capital compares it to previous downtrends, suggesting that this could be a temporary deviation rather than a lasting bearish trend.
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