Bitcoin Faces RSI Warning as Market Awaits a Major Move

• Bitcoin’s RSI is at 70.11, which signals a key level that traders are watching.  
• If RSI drops below 70, history shows that Bitcoin may enter a deep correction.  
• A strong close above 70 may help Bitcoin avoid a bearish market shift.

Bitcoin’s latest market structure presents a complex but pivotal moment as its monthly Relative Strength Index (RSI) flashes warning signals. According to analyst Tony (@tonytrades), two competing narratives dominate the current discussion. The first suggests Bitcoin is not at a cycle peak, as its RSI remains well below the historic 90+ range that previously marked market tops. 

The second, more concerning outlook points to a bearish divergence on the RSI, indicating that Bitcoin might have already topped. If this happens, history suggests a drop below 70 on the monthly RSI, which has consistently led to prolonged bear markets.  

Historical RSI Trends Point to a Decisive Moment  

These concerns are exacerbated by the long-term Bitcoin chart. History reveals that with each major market peak in 2013, 2017, and 2021, heavy sell-offs were triggered each time RSI exceeded 90. Conversely, the current RSI reading of 70.11 is considerably lower and suggests that Bitcoin could still have further gains to offer. However, the bearish divergence-that an occasion when price makes a higher high while RSI makes a lower high-is alarming. If RSI goes below 70, it may confirm other previous bear markets and raise the likelihood of some downside volatility.

The broader market reaction to these technical signals remains uncertain. Bitcoin has shown resilience, but if RSI closes under 70, it could trigger a cascade of selling pressure. The macroeconomic landscape also plays a role, with liquidity conditions and institutional participation shaping market direction. 

If Bitcoin does not reclaim strength, a deeper correction could follow, mirroring previous cycle downturns where Bitcoin lost more than 50% of its value post-peak. On the flip side, maintaining RSI above 70 and invalidating the bearish divergence could push Bitcoin toward further price discovery.  

February’s Close Will Set the Stage for Bitcoin’s Next Move  

Just as February’s month end comes to an end, traders are intensively keeping an eye on the RSI levels. An analysis by Tony said that this moment is crucial for Bitcoin since its next move will very likely define what the market will feel for months to come. If history is any measure for the future, then a confirmed break in the RSI will probably signal the start of a long and major correction while a prolonged uptrend might indicate further growth. The crypto market now waits to make its next great decision; certainly a crucial time as far as the trajectory of price for Bitcoin.