Rekt Capital sets a target for Bitcoin at 70,000 dollars based on the weekly RSI.

Bitcoin aims for a new reversal at the level of 70,000 USD as a leading indicator sets a new bottom in the bullish market.

In the analysis on April 7, trader and renowned analyst Rekt Capital predicts that BTC could find its bottom near the all-time high level from the previous year 2021.

70,000 USD could be the end point for the bitcoin price correction

According to Rekt Capital, Bitcoin has the potential to drop as low as 70,000 USD before recovering while still remaining within the bounds of historical standards.

To determine the end point of the correction phase in the current bull market, the analyst used the RSI indicator to calculate the potential price drop of BTC.

"When Bitcoin's daily RSI drops below 28, it doesn't necessarily mark a bottom. History shows that true price bottoms are usually between -0.32% and -8.44% lower than they were when the RSI first bottomed," he explained.

"Currently, Bitcoin is forming a second bottom, 2.79% lower than the first bottom. If it repeats the decline of -8.44% compared to the first bottom, the price will reach a bottom of around 70,000 USD."

1-day BTC/USD chart with RSI data | Source: Rekt Capital/XRSI is an important leading indicator that often provides signals ahead of major changes in Bitcoin's price trend. Regardless of the timeframe used, RSI levels of 30, 50, and 70 are particularly noteworthy. A score below 30 indicates an "oversold" state, while a level of 70 is considered the "overbought" threshold.

Currently, the daily RSI of Bitcoin is around 38, after being rejected at the 50 level. On the weekly chart, the RSI reached 43, marking the lowest level since the bull market began in early 2023, according to data from TradingView.

1-week BTC/USD chart with RSI data | Source: TradingViewRekt Capital also emphasizes that the price does not necessarily have to drop to as low as 70,000 USD to form a long-term bottom.

"Therefore, historical daily RSI trends during this cycle suggest that any price from the current levels to around $70,000 is likely to become the bottom of this correction," he added.

BTC/USD recently traded at 70,000 USD at the beginning of November 2024. This price level is also known as the all-time high of Bitcoin's previous bull cycle, which ended three years ago.

Macroeconomic trends are putting significant pressure on Bitcoin

According to a report by Bitcoin Magazine, the level of 70,000 USD is currently a common target for the price correction, with tools such as the "Lowest Price Forward" (Expected Lowest Price) indicating a high probability that this area will act as support.

However, Timothy Peterson, a network economist and the creator of this tool, remains pessimistic about the short-term price prospects of BTC.

He warned that macroeconomic trends in the United States this week could "easily" push BTC down to the level of 70,000 USD.

"Very bad for Bitcoin," he wrote on social media X, along with the ICE BofA US High Yield ( US high yield index ).

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should conduct thorough research before making decisions. We are not responsible for your investment decisions.

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