Recent RSI readings suggest that the market’s bullish momentum is strong and has not been seen in months.
Historically, RSI breakouts resulted in huge gains of $22K and $33K, so a new rally may be possible.
Traders now expect a strong close near $111,544 in the remaining ten days to set the trend.
Bitcoin’s monthly RSI is now above 70, indicating that it has moved into overbought territory and is a notable new development since several months ago. The increase in price has happened alongside this shift, as Bitcoin is currently being traded at $110,470, showing a rise of 3.8% in the last 24 hours. With ten days remaining in the monthly cycle, the ongoing momentum raises questions about whether this candle will surpass previous breakouts in magnitude.
https://twitter.com/CredibleCrypto/status/1925405159787495441
The last two instances of Bitcoin's monthly RSI entering overbought territory resulted in substantial price movements. The candle that marked the first breakout from this level added $22,200 to the price, while the second recorded a gain of $33,000. These rallies not only confirmed momentum but also acted as signals of wider bullish cycles in the market.
Bitcoin Builds Strength as RSI Nears Breakout Zone
Currently, Bitcoin RSI is trading at 64.16 showing that the market is in a neutral momentum awaiting more breakout to overbought territories. Moreover, the MACD line shows bullish momentum as the MaCD line is trading above the signal line.
Source: TradingView
Market participants are watching closely, especially as historical behavior suggests that RSI breakouts of this kind often precede accelerated gains over the following sessions.
BTC Holds Above $110K Amid Bullish RSI Signals
At present, Bitcoin is trading within a 24-hour range between $106,185 and $111,544. Support remains firm at $106,185, while resistance at $111,544 is yet to be breached decisively. Traders are now observing whether the price can hold above $110,000 and establish this as a new base.
Source: CoinMarketCap
The strength of the current RSI reading, combined with relatively strong price action, suggests potential for further expansion if resistance is broken. The overbought RSI condition typically signals strong momentum, although it can also indicate the possibility of short-term corrections. In this case, the context of recent breakouts and candle sizes adds weight to a more bullish interpretation.
Market Eyes Monthly Close for Confirmation
With around ten days remaining before the monthly candle closes, focus has shifted to whether the current move will grow to rival or exceed previous examples. A finish above $33,000 from the opening price would make it the largest monthly breakout in this cycle.
The next sessions will be critical in determining whether the current candle continues its expansion or begins to consolidate. Traders are expected to monitor volume, RSI continuation, and resistance pressure as key indicators of short-term direction. Market behavior around these metrics may offer clearer insights into the sustainability of this momentum.
