Bitcoin RSI hits a near three-year high, rebound or breakdown? Traders are watching this signal.

【Market Rhythm】 Recently, Bitcoin’s performance has prompted many traders to start pondering. From a historical high of $126,000 down to the current $80,500, the decline has reached 36%. This significant drop directly impacts technical indicators.

Looking at the weekly chart, you can feel it — the Relative Strength Index (RSI) of BTC/USD has slid from a local high of 64 in September to the current 35. What does this 35 mean? The last time it touched this level was in January 2023, when Bitcoin was hovering between $15,500 and $17,000.

Analyst Jelle pointed out, “When the weekly RSI hits this level, it’s definitely worth paying attention.” He also added a key judgment: “Either we are very close to the bottom, or there is still a larger decline ahead.” The logic is straightforward — extreme levels often signal a turning point.

Interestingly, the Stochastic RSI shows the deepest oversold condition since the cycle began. Mister Crypto mentioned in his analysis that such extreme overselling often indicates “a very high possibility of a short-term rebound.”

So the key question is: Is this a signal to buy the dip, or a short-term breather during a decline? It depends on subsequent price confirmation.