Bitcoin Nears a Risk Zone as RSI Hits Extreme Levels: Back to $70,000?

Bitcoin traded near $77,260 on Saturday, according to market data, after reaching an intraday high close to $79,500 before a sudden flash crash rattled the market.

The asset climbed more than 22% over the past week, but a technical signal is starting to raise caution among traders.

What the RSI Shows and Why It Matters

The relative strength index (RSI) measures price momentum on a scale of 0 to 100 and is considered overbought above 70. On the 4-hour chart, the indicator now sits at its highest level in more than seven years.

Analyst Krown noted early Saturday that this RSI extreme is good for the long term, but not for the short term. Readings above 80-90 reflect temporary exhaustion of demand.

Historically, those levels tend to precede short-term corrections or consolidations, though they do not necessarily mark the end of an uptrend.

The market already saw an initial shock in the early hours of Saturday. Bitcoin retreated sharply from around $79,500 down to a low near $76,300, in what traders described as a flash crash.

"$BTC is holding above its weekly bull market support band. A weekly close above this zone is needed for more upside in Bitcoin," crypto analyst Ted said on X.

The move liquidated more than $500 million in long positions within minutes. It formed part of total liquidations exceeding $1.35 billion over the past 24 hours, according to market data.