Is Bitcoin (BTC) Poised For A Relief Rally?

Bitcoin (BTC) has had a volatile 24 hours, plunging from $99,500 to as low as $91,231 amid mounting concerns over impending US trade tariffs on Canada

Bitcoin (BTC) price experienced a rollercoaster ride in the past 24 hours, plunging from highs of $99,500 to lows of $91,231. The sharp sell-off in the crypto market saw over $2.3 billion in liquidations, affecting more than 742,000 traders.

This level of liquidations is unprecedented in recent history, surpassing those observed during the COVID market crash of March 2020 and the FTX collapse of November 2022.

As BTC price crashed to lows of $91K, some crypto analysts are eyeing this sell-off as a potential buying opportunity, suggesting that the leading cryptocurrency may be oversold and poised for a rebound.

Crypto analyst Caleb Franzen shared some interesting insights in a post on TradingView, highlighting that Bitcoin’s 4-hour Relative Strength Index (RSI) has dipped into oversold levels.

Bitcoin 4-Hour Price Chart Shows RSI Nearing Oversold Zone - Good Accumulation Periods Historically

For the uninitiated, the RSI is a momentum indicator that measures the speed and magnitude of recent price changes to determine whether BTC is overbought or oversold. A reading above 70 suggests overbought conditions – potential for a pullback – while a reading below 30 indicates oversold conditions – potential for a rebound.

According to Franzen’s chart, Bitcoin’s current RSI is hovering around 24 on the 4-hour timeframe, indicating that BTC may be in an attractive accumulation zone. If historical trends hold, BTC could be on the verge of a short-term recovery.

Some Key Levels To Watch For Bitcoin Price

As of the latest updates, Donald Trump and his Mexican counterpart Claudia Sheinbaum have agreed to temporarily delay the proposed trade tariffs, offering some relief to financial markets. However, uncertainty remains regarding trade negotiations with Canada, leaving investors cautious about BTC’s next move.

Crypto analyst Johnny is keeping a close eye on the “meat” of BTC’s down move, which he believes is likely over. According to the analyst, as long as BTC continues to trade above range lows and the yearly open, it will “look good compared to the rest of the market.”

However, not all experts are optimistic about Bitcoin’s price action in the coming days. Renowned businessman and author Robert Kiyosaki is warning that BTC could face further downside pressure if Trump follows through with his tariff plans.

According to Kiyosaki, increased tariffs could strengthen the US dollar, potentially driving investors away from risk assets like Bitcoin in the short term. At press time, BTC trades at $98,644, up 0.4% in the past 24 hours.