Bitcoin may be on the verge of a major turnaround as a prominent crypto analyst highlights a powerful technical signal suggesting the asset is nearing a local bottom. Known for accurately predicting Bitcoin’s Q1 2024 correction, pseudonymous trader Rekt Capital has once again drawn attention to key momentum indicators pointing to a potential bullish reversal in the world’s leading cryptocurrency.
Using the Relative Strength Index (RSI) on the daily chart, Rekt Capital observes that Bitcoin has entered deeply oversold territory — a condition historically associated with strong price recoveries. With Bitcoin currently trading around $82,207 — down over 4% in the past 24 hours — market participants are closely watching for signs of stabilization.
RSI Hits Critical Oversold Levels
The daily RSI for Bitcoin recently dipped to 23.93, matching levels last seen during the depths of the 2022 bear market. According to Rekt Capital, this is a significant data point.
“Bitcoin’s Daily RSI equaled 2022 Bear Market RSI levels (RSI=23.93) when the price crashed into the high $70,000s. The only lower Daily RSI in this cycle was back in August 2023 (RSI=18.28). Throughout this cycle, each visit into sub-25 RSI resulted in a trend reversal to the upside over time.”
This pattern has held true across multiple phases of the current bull cycle. Whenever Bitcoin’s RSI dropped to 28 or below, the price either formed a bottom or was within 2% to 8% of doing so. These repeated reactions suggest strong buyer interest emerging at these valuations.
👉 Discover how top traders use momentum indicators to spot market reversals before they happen.
Historical Price Action Suggests Support Zone
Based on historical price behavior, Rekt Capital identifies a potential support zone between $71,700 and $78,000 where Bitcoin could establish a durable floor. While the asset has printed a lower high on the daily chart — confirming short-term bearish momentum — the analyst remains optimistic about medium-term prospects.
This range isn’t arbitrary. It aligns with previous accumulation zones and coincides with key on-chain metrics such as long-term holder supply and realized price bands. When combined with extreme RSI readings, the case for a bottom grows stronger.
Moreover, Bitcoin has not seen such deep RSI compression since the post-halving volatility of mid-2023. Each prior instance was followed by double-digit percentage gains within weeks.
Double Bottom Formation: A Bullish Blueprint?
One of the most compelling arguments for an imminent reversal lies in the potential formation of a double bottom pattern — a classic technical structure signaling exhaustion among sellers and growing confidence among buyers.
Rekt Capital draws parallels between Bitcoin’s current price action and that of Cronos (CRO), a layer-1 blockchain that may have already completed its own double bottom breakout. At the time of analysis, CRO had broken above resistance near $0.08, confirming the pattern — and possibly leading Bitcoin in terms of recovery timing.
“What’s interesting to see is that BTC is trying to build out a potential Double Bottom-like formation here. Whereas CRO has potentially broken out from its own Double Bottom, in fact leading Bitcoin. Other Altcoins are in varying phases of their own respective Double Bottoms.”
A confirmed double bottom typically involves two failed attempts to break below a prior low, followed by a rally above the intervening peak (the "neckline"). If Bitcoin clears resistance from its recent swing high, it could trigger a measured move upward — potentially retracing the entire decline from its all-time highs.
This kind of pattern often reflects macro-level shifts: institutional accumulation, miner capitulation, and retail fear peaking — all conditions currently visible in on-chain data.
👉 Learn how to identify high-probability reversal patterns before major price moves unfold.
Market Sentiment and On-Chain Context
While technicals provide structure, broader market sentiment adds context. Recent data shows:
- Long-term holders continue to accumulate, showing confidence in higher price targets.
- Exchange outflows remain elevated, indicating coins are moving into cold storage rather than being sold.
- Funding rates are neutral-to-slightly negative, avoiding dangerous over-leverage seen before past corrections.
These factors suggest that despite short-term price pressure, structural demand remains intact. Combined with historically low RSI readings, the stage may be set for a sharp counter-trend rally.
Core Keywords and SEO Optimization
To align with search intent and enhance discoverability, this analysis integrates the following core keywords naturally throughout:
- Bitcoin bullish reversal
- BTC RSI oversold
- Bitcoin double bottom pattern
- Bitcoin price prediction 2025
- Crypto market bottom
- Bitcoin technical analysis
- BTC support zone
- Rekt Capital Bitcoin analysis
These terms reflect high-volume queries from investors seeking clarity during volatile periods — exactly when actionable insights matter most.
FAQ: Common Questions About Bitcoin's Current Outlook
Q: What does an oversold RSI mean for Bitcoin?
A: An oversold RSI (typically below 30) suggests that Bitcoin has been heavily sold off in the short term and may be due for a bounce. Historically, daily RSI readings under 25 have preceded strong rallies.
Q: Is a double bottom bullish for BTC?
A: Yes. A double bottom is a reversal pattern indicating that selling pressure has exhausted. Once the price breaks above the neckline resistance, it often leads to significant upward momentum.
Q: How reliable is Rekt Capital’s analysis?
A: Rekt Capital has gained credibility for calling key turning points, including the 2024 pre-halving correction. While no analyst is infallible, his methodology combines technicals, on-chain data, and historical patterns.
Q: Could Bitcoin drop further despite these signals?
A: Absolutely. Technical indicators are probabilistic, not guaranteed. Macro risks like regulatory news or global liquidity shifts could extend downside pressure.
Q: What price range should traders watch for confirmation?
A: A sustained close above $85,000 would support a bullish breakout. Conversely, a drop below $71,700 could invalidate the current bottoming thesis.
Q: Are altcoins showing similar patterns?
A: Yes. As noted by Rekt Capital, assets like CRO are exhibiting early signs of reversal, often acting as leading indicators for broader market sentiment shifts.
Final Thoughts: Patience Before the Next Move
While Bitcoin’s recent dip has sparked concern, technical evidence increasingly points to a maturing correction rather than the start of a prolonged bear phase. With RSI at multi-month lows, historical support nearby, and early signs of reversal patterns emerging, many traders are positioning for a potential rebound.
As always, risk management remains crucial. Traders should avoid emotional decisions during volatility and instead focus on confluence — combining technical signals, on-chain trends, and macro context for higher-probability outcomes.
The next few weeks could prove pivotal. If Bitcoin holds above $71,700 and begins to reclaim lost ground, the path back toward new all-time highs may reopen sooner than expected.