Bitcoin (BTC) traded near $77,260 Saturday after a $79,500 flash crash, while a seven-year RSI extreme raised warnings of a deeper correction toward $70,000.
Key Points:
- Bitcoin fell from around $79,500 to about $76,300 during a sudden weekend reversal.
- Four-hour RSI reached its highest level in more than seven years, signaling unusually strong momentum and possible short-term exhaustion.
- Traders are watching $75,000-$76,000 support, with upside scenarios near $83,000-$88,000 and deeper correction targets around $70,000-$72,000.
Bitcoin Flash Crash
Media reported Bitcoin near $77,260 on Aug. 22 after the cryptocurrency briefly approached $79,500 and then dropped to roughly $76,300. The reversal came after Bitcoin gained more than 22% during the previous week, leaving momentum indicators at unusually stretched levels.
The four-hour relative strength index reached its highest reading in more than seven years.
RSI measures momentum on a scale from zero to 100, with readings above 70 generally considered overbought. The article said the indicator had moved into the 80-90 range, where demand can become temporarily exhausted even when a broader uptrend remains intact.
The flash crash also liquidated more than $500 million in long positions within minutes, part of more than $1.35 billion in liquidations over 24 hours.
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Krown RSI Warning
Krown said the extreme RSI reading was constructive for the longer-term trend but unfavorable in the short term. Ted focused on weekly structure, saying, “$BTC is holding above its weekly bull market support band. A weekly close above this zone is needed for more upside in Bitcoin.”
Other analysts see a growing risk that the latest expansion is near a local peak. CredibleCrypto said the lower-timeframe wave structure had become difficult to read and argued that a pullback could follow if the current upward move is complete.
The bullish case depends heavily on Bitcoin holding support around $75,000 to $76,000, which could leave room for a move toward $83,000 to $88,000. A loss of momentum after the overbought reading could instead expose the $70,000 to $72,000 area.
Before Saturday’s reversal, Bitcoin had already climbed more than 22% in one week and touched nearly $79,500, making the current RSI warning a test of whether that surge can consolidate without a deeper retracement.
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Alexey Bondarev is the Head of Content at Yellow.com, having reported on crypto for the last 10 years. He specializes in in-depth Research and Learn pieces, with a focus on analytical reporting, industry context, and the bigger forces shaping crypto, from the AI era and security technologies to fintech innovation. He believes that everything digital will imminently overcome everything analogue and is working hard to make that come true.