A notable change has occurred in Bitcoin's technical picture. The cryptocurrency's Relative Strength Index (RSI) has climbed into the 84-86 range, entering Bitcoin into its strongest overbought zone since November 2024. The rise of this technical indicator has drawn investor attention following Bitcoin's recent sharp surge.
Bitcoin recently broke out of its trading range between $62,000 and $71,000. Following this breakout, the cryptocurrency jumped 12% in just one to two days, at one point approaching the $80,000 level. This sharp price movement also led to significant short position liquidations in the market.
According to data, during Bitcoin's sharp rally, over $3 billion worth of short positions were liquidated within 24 hours. These forced position closures caused investors who had opened short positions to exit the market, and subsequent liquidations contributed to further acceleration of the upward movement.
In the short term, the $77,000 level stands out as a crucial support point for Bitcoin. Analysts believe that holding the price above this level is critical for maintaining the uptrend. Conversely, it is noted that a break below the $77,000 support level could intensify short-term selling pressure.
The fact that Bitcoin's RSI is approaching its highest overbought level in two years indicates that strong momentum coexists with the risk of a potential correction.
*This is not investment advice.
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