Bitcoin (BTC) has established a new reversal target of $70,000 as a key indicator reaches new low points indicative of a bull market.
In an analysis on April 7, renowned trader and analyst Rekt Capital forecasted that BTC/USD might find its support level close to the previous all-time highs from 2021.
Historical Patterns Indicate $70,000 May Conclude BTC Price Decline
According to Rekt Capital, Bitcoin could potentially dip to as low as $70,000 before staging a recovery, while remaining within historical trends.
The analyst employed the relative strength index (RSI) to estimate the potential downward movement of BTC price as the current bull market correction progresses.
“Whenever Bitcoin’s Daily RSI falls into sub-28 levels, it doesn’t necessarily signify a price bottom. Actually, historically, the actual price bottom tends to be -0.32% to -8.44% lower than the price when the RSI first hits its low,” he clarified.
“Bitcoin is currently establishing its second low at -2.79% below the first low. A repeat of -8.44% below the original low would bring the price down to approximately ~$70,000.”
BTC/USD 1-day chart with RSI data. Source: Rekt Capital/X
The RSI serves as an exemplary leading indicator, generating signals that frequently precede significant price shifts in BTC. No matter the timeframe, the 30, 50, and 70 RSI thresholds are particularly critical. A score below 30 indicates “oversold” conditions, whereas 70 marks the threshold for “overbought.”
At present, the daily RSI hovers around 38 after facing resistance at 50. In the weekly chart, the RSI sits at 43, reflecting its lowest reading since the commencement of the bull market in early 2023, according to data from Cointelegraph Markets Pro and TradingView.
BTC/USD 1-week chart with RSI data. Source: Cointelegraph/TradingView
Rekt Capital also remarked that the price does not necessarily need to reduce to $70,000 for a long-term bottom to be established.
“Hence, the historical Daily RSI trends for this market cycle indicate that a bottom could occur anywhere between current prices and ~$70,000.”
BTC/USD last traded at $70,000 in early November 2024, a price level primarily recognized as the all-time high from Bitcoin’s previous bull run that concluded three years prior.
Macro Factors Are “Severely Adverse for Bitcoin”
As reported by Cointelegraph, $70,000 is a widely anticipated target for the ongoing correction, with various tools like the Lowest Price Forward metric suggesting a strong likelihood that area will serve as support.
Related: Black Monday 2.0? 5 key insights regarding Bitcoin this week
Although its creator, network economist Timothy Peterson, remains pessimistic about the immediate BTC price forecast.
He cautioned this week that US macroeconomic developments could “easily” drive BTC/USD down to the $70,000 target.
“This is seriously bad for Bitcoin,” he remarked on X along with a chart from the ICE BofA US High Yield.
This article does not offer investment advice or recommendations. All investment and trading activities carry risks, and readers should perform their own research before making a decision.
