Bitcoin 
$95,650.36Its price fell below $90,000 on Tuesday morning, losing 28 percent in value in the last month. This sharp decline in price caused the 14-day Relative Strength Index (RSI) to fall below the 30 level. In the technical indicator, this level is generally interpreted as oversold and indicates that selling pressure may ease in the short term. However, experienced analysts emphasize that this signal alone is not reliable and that the decline is still strong.
RSI Indicator Is Warning
The RSI indicator falling below 30 reveals that Bitcoin’s selling momentum has become very strong. Although this technical signal points to turning points in the past where price declines have slowed down, it does not guarantee an immediate recovery in the market. RSI can stay in this area for a long time. So selling pressure may continue. For this reason, investors prefer to evaluate RSI data together with price movements rather than alone.
According to analysts oversold signal Although it has the potential to change the direction of the market, the main determining factor is the support levels and candle formations that may occur on the price chart. In particular, Doji or long lower wick candles may indicate that the selling pressure has decreased and the buyers have regained strength. Such a picture may pave the way for a short-term reaction by confirming the slowdown indicated by the RSI.
Will History Repeat?
RSI indicator When it last fell below the 30 level at the end of February, Bitcoin was trading below $80,000. At that time, the rate of decline slowed down and a bottom was formed around $75,000 at the beginning of April. It is a matter of curiosity whether a similar scenario will be repeated today. The RSI signals oversold again, leading some investors to take cautious positions against the possibility of a possible recovery.
Widely following the RSI in the market may cause the signal to create its own effect from time to time. In other words, when many investors act according to the same technical data, collective buying or selling behavior can accelerate the price movement. Currently, the RSI indicates a critical phase in which psychologically weakened investors are looking for direction. But beyond technical indicators, what will determine Bitcoin’s short-term fate will be how the market reacts to support areas.
