Bitcoin Slides to $109,356 as BTC RSI Signals Potential Oversold Bounce

Quick Take

• BTC currently trading at $109,356 (-0.27% in 24h)
• Bitcoin’s RSI at 37.66 approaching oversold territory, signaling potential bounce
• BTC price testing lower Bollinger Band support around $108,511

What’s Driving Bitcoin Price Today?

With no significant news events emerging in the past week, Bitcoin’s current price action appears driven primarily by technical factors and broader market sentiment. The BTC price has declined modestly by 0.27% over the past 24 hours, reflecting the ongoing consolidation phase that has characterized recent trading sessions.

The absence of major catalysts has left Bitcoin vulnerable to technical selling pressure, with the BTC/USDT pair trading within a relatively narrow range between $109,064 and $109,787. This sideways movement suggests traders are waiting for clearer directional signals before committing to larger positions.

BTC Technical Analysis: Mixed Signals Emerge

Bitcoin technical analysis reveals a complex picture with both bearish momentum and potential reversal signals developing. The most notable indicator is Bitcoin’s RSI sitting at 37.66, which places it in neutral territory but trending toward oversold conditions. This BTC RSI reading suggests that selling pressure may be nearing exhaustion.

The MACD tells a different story, with the indicator at -935.60 and the histogram showing -707.70, confirming bearish momentum remains intact. However, Bitcoin’s position relative to its Bollinger Bands presents an interesting dynamic. With the BTC price at just 0.0799 on the %B scale, Bitcoin is trading very close to the lower band at $108,511, historically a level that often provides support.

Bitcoin’s moving averages paint a mixed picture. While the BTC price trades below shorter-term averages like the 7-day SMA at $110,798 and 20-day SMA at $113,800, it remains above the critical 200-day SMA at $104,414. This configuration suggests the longer-term uptrend remains intact despite recent weakness.

Bitcoin Price Levels: Key Support and Resistance

Critical Bitcoin support levels emerge at $108,620 for immediate support, with stronger backing expected around $107,255. These levels align closely with the lower Bollinger Band, creating a confluence of technical factors that could attract buyers.

On the upside, BTC resistance appears formidable at $117,900 initially, representing the immediate hurdle for any recovery attempt. Beyond that, Bitcoin faces strong resistance at $124,474, which coincides closely with the recent 52-week high of $123,306.

The current pivot point at $109,402 sits just above current BTC price levels, suggesting that reclaiming this level could signal the beginning of a short-term recovery. Based on Binance spot market data, the daily ATR of $2,148 indicates moderate volatility, giving traders clear parameters for position sizing and risk management.

Should You Buy BTC Now? Risk-Reward Analysis

For swing traders, the current setup presents an interesting risk-reward opportunity. With Bitcoin support levels clearly defined around $107,255-$108,620, stops can be placed with precision while targeting the immediate resistance at $117,900 offers a favorable 2:1 risk-reward ratio.

Conservative investors might wait for a clear break above the 20-day SMA at $113,800 before adding to positions, as this would signal renewed bullish momentum. The BTC RSI approaching oversold territory suggests that any bounce from current support levels could be meaningful.

Day traders should focus on the $108,620 support level as a key inflection point. A decisive break below this level with volume could target the $107,255 strong support, while a bounce could initially target the pivot at $109,402 and potentially the $110,798 level where the 7-day SMA resides.

Conclusion

Bitcoin’s current technical setup suggests a market at an inflection point. While the BTC price faces near-term headwinds with bearish MACD signals, the proximity to Bollinger Band support and RSI approaching oversold levels creates conditions for a potential relief rally. Traders should monitor the $108,620 support level closely over the next 24-48 hours, as a break below could accelerate selling toward $107,255, while a bounce could target initial resistance around $110,798-$113,800.

Image source: Shutterstock