- Bitcoin traded near $77,260 on Saturday, after it touched a session high of around $79,500 in the previous session.
- The Relative Strength Index (RSI) on the 4-hour timeframe has reached its highest level in more than seven years, which has raised traders’ caution.
- The short-term scenarios range from $83,000 to $88,000 if the uptrend continues, or a deeper pullback toward $70,000–$72,000.
### What does a rise in the Relative Strength Index mean?
The Relative Strength Index measures price momentum on a scale from zero to 100, and the market is considered in "overbought" territory above the 70 level. Currently, on the four-hour timeframe, the index has reached its highest levels in more than seven years.
The well-known analyst, nicknamed "Krown," said that this extreme level of the index is positive in the long term, but not in the short term, explaining that readings above 80-90 reflect a temporary state of demand exhaustion. Historically, these levels are usually followed by corrections or short-term consolidation periods, but they do not necessarily mean the end of the uptrend.
## Sudden market crash
The market saw an initial shock in the early hours of Saturday, as Bitcoin sharply fell from around $79,500 to a low near $76,300, which traders described as a "flash crash." This move led to the liquidation of more than $500 million in long positions within minutes, out of total liquidations exceeding $1.35 billion over 24 hours.
Analyst "Ted" said that Bitcoin is still holding above the support range of the weekly uptrend, and that a weekly close above this zone is necessary for further upside.
### Analysts split on the next path
Opinions among widely followed analysts are divided:
- Analyst "Shardi B" warned that the daily Relative Strength Index is approaching its highest historical levels and advised caution.
- Others noted that the index reached 84 points, close to resistance areas that have historically punished late buyers, with the possibility of forming a local top or a sharp pullback.
- Analyst "CredibleCrypto" believed it could be the right time for a correction or a local top if the current upwave is completed.
- In contrast, a more optimistic team believes that the index reaching extreme levels does not usually mean the up-move is over. Momentum often continues before any correction occurs, with a target of between $83,000 and $85,000 in the coming weeks.
### The two scenarios presented
1. Continued rise: toward the $83,000-$88,000 range, provided the support zone holds at $75,000-$76,000.
2. Deeper correction: toward the $70,000-$72,000 range, if momentum fades following the state of buying saturation and the recent sudden crash.
The market is therefore at a critical point: the question is whether an extreme reading on the Relative Strength Index merely signals a healthy pause, or the start of a larger correction after a strong weekly uptrend.
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