Bitcoin hourly RSI falls to most ‘oversold’ since $60K BTC price

Bitcoin (BTC) traders expect a short-term bounce as one BTC price metric sinks to its lowest levels in several months.

Data from Cointelegraph Markets Pro and TradingView reveals deeply “oversold” conditions on the BTC/USD relative strength index (RSI).

BTC price dip sends RSI back to October

Bitcoin tanking 5% in a day has had serious implications for low-timeframe RSI. 

On the hourly chart, RSI fell from local highs of 81.7 on Jan. 6 to three-month lows of just 16.6 a day later. 

Such a rapid decline is a rare occurrence, taking BTC/USD from “overbought” to “oversold” in 24 hours. The last time that the index measured so low, BTC/USD traded at $60,000.

RSI measures trend strength and contains three key levels for observers: the 30 “oversold” boundary, the 50 midpoint and the 70 “overbought” threshold.

When the price crosses these levels, depending on the direction, traders can make inferences about the future of a given uptrend or downtrend. During bull markets, Bitcoin regularly spends extended periods in “overbought” territory.

With the latest comedown, traders thus quickly suggested that BTC price was due for an upward relief bounce in the face of an RSI overreaction.

“1-hour Bitcoin RSI is at 16 and 4-hour almost completely reset,” popular commentator Bitcoin Munger reported in a post on X while observing inflows to the US spot Bitcoin exchange-traded funds (ETFs).

Despite making new local lows on Jan. 8, RSI contrasted with the spot price downtrend — a deviation that classically precedes price relief.

“Bitcoin #BTC $BTCUSD has reached the next RSI(5) oversold point on the 6-hour chart…,” trader and portfolio manager David Cox continued about other low-timeframe RSI readings.

Bitcoin traders still see new lows in January

As Cointelegraph reported, bearish BTC price targets remain in circulation in the run-up to the inauguration of US President-Elect Donald Trump.

Related: Back to $76K for 2025? 5 Things to know in Bitcoin this week

These include a return to range lows at or just below $90,000, along with deeper corrections to $80,000 or lower.

Adding to the downside forecasts, popular trader Bluntz employed Elliott Wave Theory to predict the new lows coming within the next two weeks.

A chart uploaded to X implied that new all-time highs should nonetheless result once the market bounces.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.