Bitcoin’s Relative Strength Index (RSI) has just dropped below 50, sparking major concerns that the BTC price might be heading for another major correction. This move has also prompted analysts to closely watch for signs of an increased sell-off, as they decipher what the new RSI level means for the market. Historically, when the RSI of BTC falls below this level, it often leads to a significant price crash. This suggests that if past patterns were to repeat, Bitcoin could be gearing up for further breakdowns.
RSI Drop Signals Potential Bitcoin Crash
Crypto analyst Tony Severino has taken to X social media to announce that Bitcoin could see capitulation this month. His prediction is accompanied by a chart showing Bitcoin’s RSI falling to 48.19 on the BTC/Gold ratio. The last few times this happened, the leading cryptocurrency experienced steep capitulation of more than 40%.
Based on the analyst’s insight, this familiar decline in RSI could be a sign that Bitcoin is about to face another rough patch, as the market reacts to weakening momentum. He explained that this type of move often marks a turning point, where investors lose confidence and selling accelerates.
Severino’s chart analysis suggests that while RSI dropping below 50 is a strong warning signal, it’s only the beginning of a potential downturn. He notes that past bear markets typically bottom out months after this decline, meaning there could still be more time before Bitcoin hits its lowest point.
Nevertheless, Severino’s analysis concludes that the Bitcoin price is headed for a challenging phase that could lead to further declines. Recently, the cryptocurrency shed more than 10% of its value following a large-scale liquidation that shook the crypto market. Its price has broken down to $101,756 at the time of writing and is showing no apparent signs of recovery during this ongoing market slump.
Why 2026 Could Be The Ideal Time To Buy BTC
While Severino’s short-term outlook for Bitcoin appears uncertain, he has provided a long-term strategy for investors and traders looking to capitalize on future price dips. In a prior chart analysis, he suggested that the ideal time to start Dollar-Cost Averaging (DCA) into Bitcoin would be after October 2026, when the cryptocurrency could be priced around $48,000 to $50,000.
The analyst has based this prediction on Bitcoin’s historical cycles, which have followed a regular pattern of price increases and declines. Severino believes that if this cyclical rhythm continues, BTC could find support near the “50-month Moving Average (MA) with a 10% envelope.” If this happens, 2026 would be the perfect time for long-term investors to begin buying, as the market would have likely undergone a significant correction, which the analyst forecasts could be a 61.8% decline from BTC’s current price of above $101,800.
Featured image from Pixabay, chart from Tradingview.com
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