Bitcoin may be forming a short-term Dip as the RSI indicator approaches oversold territory and whales open Longing positions, creating momentum for a rally to the $100,000–$110,000 region.
Bitcoin may be forming a short-term Dip after weeks of sharp sell-off, with one market analyst suggesting current conditions are opening up the possibility for a rally to the $100,000–$110,000 region.
In a recent video, trader Mister Crypto said that Bitcoin’s short-term structure is showing signs of stabilization after what he described as a “panic sell-off” across the market. He noted that signals related to trader behavior suggest that large players have begun to open new Longing positions, despite the market sentiment being in extreme fear territory — a combination that often precedes rallies during a sharp decline.
One of the key technical signals being mentioned is Bitcoin’s weekly RSI (Relative Strength Index), which is approaching 30. “We Dip Bitcoin right here. We’re at 30. Boom,” he said.
The analyst said that in previous cycles, this zone has often coincided with market Dip . While he cautioned that this is not a sure sign of a new Bull run, he said the current setup often signals at least a temporary reversal.
The $102,000 mark is in the spotlight
Another factor supporting the recovery scenario is the gap between Bitcoin price and its 50-week moving Medium , which is currently around $102,000. According to the analysis, Bitcoin has tended to return to this line many times after falling below it in previous cycles. The current expectation is for a pullback to the six-digit range before a larger trend emerges.
Macro factors also add to short-term optimism. Analysts point to expectations that quantitative tightening may soon end, along with the possibility of another rate cut at the upcoming policy meeting. Both of these factors typically benefit risk assets like Bitcoin due to loose financial conditions.
However, the longer-term outlook remains cautious. The analyst believes the broader market remains in bearish territory. He warns that any pullback could be followed by a fresh wave of weakness, as overall conditions have yet to show a clear reversal to a sustained growth phase.
Crypto sentiment escapes “extreme fear”
After 18 days in the “Extreme Fear” zone, the Crypto Fear & Greed Index has inched up to the “Fear” level, reaching 28.
Meanwhile, André Dragosch, head of research at Bitwise Europe, believes that Bitcoin could see a big run in the near term, as its current price does not reflect improving macro expectations. He said Bitcoin is offering a similar “risk-reward asymmetry” to the March 2020 COVID crash, when prices plunged before rebounding sharply, and that the market is currently pricing in an extremely negative global economic outlook.
