Traders expect Bitcoin to rebound in the short term, as the RSI index is in an extremely "oversold" state

According to Cointelegraph, traders expect a short-term rebound for Bitcoin, as data shows that the relative strength index (RSI) for BTC/USD is in an extremely "oversold" state, having fallen to its lowest level in nearly three years.

Bitcoin has dropped 36% from its all-time high of $126,000 to $80,500, significantly impacting the RSI indicator on higher time frames. On the weekly chart, the RSI has fallen from a local high of 64 in September to the current level of 35, which was last seen in January 2023 when Bitcoin was trading around $15,500-$17,000.

Analyst Jelle stated, "Historically, when the weekly RSI reaches this level, it is worth paying attention to." He added, "Either we are close to the bottom, or we will soon experience a larger downward movement." Mister Crypto pointed out in a post on X on Friday that Bitcoin's stochastic RSI shows its oversold level is the deepest it has been throughout the cycle, indicating "a very high likelihood of a short-term rebound."