Bitcoin seems to be finding a local bottom, suggesting a possible relief rally could push prices towards the $100,000–$110,000 range. Market analyst Mister Crypto pointed out signs of stabilization in Bitcoin’s structure amid ongoing extreme market fear.

“We’ve hit this level for Bitcoin. We have been nearing the 30 mark on the RSI. Boom,” he commented.
“Hemos llegado a este nivel para Bitcoin. Hemos estado cerca de 30 en el RSI. Boom.”

The Relative Strength Index (RSI), a key technical indicator, is nearing critical levels that historically signal market bottoms. Although there’s optimism about a price reversal, the analyst warns that this doesn’t guarantee a long-term bullish trend.

Focus on $102,000 Level

Additionally, Bitcoin’s proximity to the 50-week moving average at about $102,000 plays a crucial role in this recovery narrative. Past market movements indicate that after breaching this average, Bitcoin typically retraces back toward it. The speculation today is that a rebound might occur, returning prices to six figures in the near future.

Expectations of easing financial conditions also bolster this viewpoint, as potential cessation of quantitative tightening and anticipated interest rate cuts could favor riskier assets like Bitcoin.

However, the overarching market sentiment remains bearish. Analysts caution that a price bounce could lead to renewed downward pressure later, as broader indicators do not yet indicate a definitive shift to recovery.

The Crypto Fear & Greed Index has also shifted from “Extreme Fear” to a “Fear” score of 28 after 18 days.

André Dragosch, head of research at Bitwise Europe, emphasized that Bitcoin’s current price could exhibit significant upside potential in light of improving macroeconomic conditions, suggesting a comparable risk-reward scenario to that observed during the COVID crash in March 2020.