Bitcoin (BTC) has had a volatile 24 hours, plunging from $99,500 to as low as $91,231 amid mounting concerns over impending US trade tariffs on Canada, Mexico, and China. However, some crypto analysts see this sharp decline as a buying opportunity, suggesting that BTC may be oversold and poised for a rebound.<\/p>\n
Yesterday, the crypto market experienced one of its largest sell-offs in history, with over<\/a> $2.3 billion in liquidations affecting more than 742,000 traders. This level of liquidations surpasses those seen during the COVID market crash in March 2020 and the FTX collapse in November 2022.<\/p>\n Despite the downturn, some analysts argue that BTC may have entered oversold territory, signaling a potential relief rally. Crypto analyst Caleb Franzen shared insights in a post<\/a> on X, highlighting that Bitcoin\u2019s 4-hour Relative Strength Index (RSI) has dipped into oversold levels. He noted:<\/p>\n For the 5th time since August 2024, Bitcoin\u2019s 4-hour RSI is becoming oversold. Each of the prior signals were attractive accumulation periods, even if price made new short-term lows after the signal flashed.<\/p>\n For the uninitiated, the RSI is a momentum indicator that measures the speed and magnitude of recent price changes to determine whether BTC is overbought or oversold. A reading above 70 suggests overbought conditions \u2013 potential for a pullback \u2013 while a reading below 30 indicates oversold conditions \u2013 potential for a rebound.<\/p>\n According to Franzen\u2019s chart, Bitcoin\u2019s current RSI is hovering around 24 on the 4-hour timeframe, indicating that BTC may be in an attractive accumulation zone. If historical trends hold, BTC could be on the verge of a short-term recovery.<\/p>\n As of the latest updates<\/a>, Donald Trump and his Mexican counterpart Claudia Sheinbaum have agreed to temporarily delay the proposed trade tariffs, offering some relief to financial markets. However, uncertainty remains regarding trade negotiations with Canada, leaving investors cautious about BTC\u2019s next move.<\/p>\n Meanwhile, fellow crypto analyst Johnny\u2019s analysis indicates<\/a> that \u201cthe meat\u201d of BTC\u2019s current down move is likely over. The analyst added that as long as BTC continues<\/a> to trade above range lows and the yearly open, it will \u201clook good compared to the rest of the market.\u201d<\/p>\n However, not all experts are optimistic. Renowned businessman and author Robert Kiyosaki warns<\/a> that BTC could face further downside pressure if Trump follows through with his tariff plans.\u00a0<\/p>\nIs There More Trouble For BTC Ahead?<\/h2>\n