Bitcoin Slides From $79.5K As RSI Hits Seven-Year Extreme

Bitcoin (BTC) traded near $77,260 Saturday after a $79,500 flash crash, while a seven-year RSI extreme raised warnings of a deeper correction toward $70,000.

Key Points:

• Bitcoin fell from around $79,500 to about $76,300 during a sudden weekend reversal.
• Four-hour RSI reached its highest level in more than seven years, signaling unusually strong momentum and possible short-term exhaustion.
• Traders are watching $75,000-$76,000 support, with upside scenarios near $83,000-$88,000 and deeper correction targets around $70,000-$72,000.

Bitcoin Flash Crash

Media reported Bitcoin near $77,260 on Aug. 22 after the cryptocurrency briefly approached $79,500 and then dropped to roughly $76,300. The reversal came after Bitcoin gained more than 22% during the previous week, leaving momentum indicators at unusually stretched levels.

The four-hour relative strength index reached its highest reading in more than seven years.

RSI measures momentum on a scale from zero to 100, with readings above 70 generally considered overbought. The article said the indicator had moved into the 80-90 range, where demand can become temporarily exhausted even when a broader uptrend remains intact.

The flash crash also liquidated more than $500 million in long positions within minutes, part of more than $1.35 billion in liquidations over 24 hours.