Traders anticipate a short-term rebound in Bitcoin, as the RSI indicator is in a highly "oversold" state.

December 19 — Traders are betting on a short-term Bitcoin rebound, per a Cointelegraph report, as the cryptocurrency’s Relative Strength Index (RSI) sits in an extremely oversold state — hitting its lowest level in nearly three years. Bitcoin has dropped 36% from its all-time high of $126,000 to $80,500, weighing heavily on its long-term RSI. On the weekly chart, the indicator fell from a September local high of 64 to its current reading of 35. The last time RSI reached this level was January 2023, when Bitcoin traded between $15,500 and $17,000. Analyst Jelle noted: “Historically, when the weekly RSI touches this level, it’s worth watching. Either we’re near a bottom, or a bigger downward move is coming soon.” In a Friday X post, Mister Crypto pointed out Bitcoin’s Stochastic RSI is at its deepest oversold level on record. “The chance of a short-term rebound is very high,” he said.