Analysis: Traders expect Bitcoin to rebound in the short term, with the RSI index in an extremely "oversold" condition

According to Cointelegraph, traders expect a short-term rebound for Bitcoin, as data shows that the relative strength index (RSI) for BTC/USD is in an extremely "oversold" state, having dropped to its lowest level in nearly three years.

Bitcoin has fallen 36% from its all-time high of $126,000 to $80,500, significantly impacting the RSI indicator on higher time frames. On the weekly chart, the RSI has dropped from a local high of 64 in September to its current level of 35, which was last seen in January 2023 when Bitcoin was trading around $15,500-$17,000.

Analyst Jelle stated, "Historically, when the weekly RSI reaches this level, it is worth paying attention." He added, "Either we are close to the bottom, or we will soon experience a larger downward movement." Mister Crypto pointed out in a post on X on Friday that Bitcoin's stochastic RSI shows its oversold level is the deepest it has been throughout the entire cycle, indicating that "the possibility of a short-term rebound is very high."