Latest BTC Market Update

Chart: https://www.gate.com/trade/BTC_USDT

In the past 24 hours, Bitcoin’s price has seen dramatic swings, surging to as high as $123,800 and dropping to a low of $117,100. The price is now holding steady around $118,500. This high-volatility trading range suggests that the market is in a state of delicate equilibrium, with both bulls and bears waiting for a clear signal before taking decisive action.

RSI Indicator

Currently, the Relative Strength Index (RSI) is a key tool for gauging short-term market direction. The RSI moves between 0 and 100; readings above 70 typically signal an overbought market, while readings below 30 point to oversold conditions. When the RSI diverges from price trends, it often foreshadows a shift in market direction.

Potential Pullback to $95K

Bitcoin is trading not far from the crucial support level at $112,600. If this level is breached, it could trigger panic selling, accelerating the price decline. Looking at historical patterns, when the RSI falls below key thresholds, Bitcoin has often seen corrections of 20% or even 30%. From the current price of $118,500, a 20% decline would land Bitcoin right around the $95K mark. This level serves not only as a psychological barrier but has previously served as a support level for multiple rebounds. If the price returns to this zone, it may attract increased capital inflows.

Conditions for a Rebound to $119K

There remains an optimistic path forward. If the RSI forms a bullish divergence—where price fails to set a new high but the RSI starts to recover—it typically signals waning selling pressure. Should Bitcoin hold above $118,000 and close above the key support level for several consecutive sessions, bulls could drive a renewed push toward the $119K resistance. A breakout above this level would likely swing market sentiment bullish and attract increased capital inflows.

Advice for New Investors

New investors should keep two principles in mind: First, no single indicator—RSI included—is definitive. Always combine multiple tools like trading volume and moving averages for a more complete picture. Second, set strict stop-loss orders to guard against major moves and limit potential losses. Defensive investors may place their stop near $112,600. More aggressive investors can consider entering positions incrementally after a confirmed bullish RSI divergence, targeting $119K as an exit.