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

On December 19, according to Cointelegraph, traders expect a short-term rebound for Bitcoin. Data shows that the Relative Strength Index (RSI) of BTC/USD is in an extremely “oversold” state, with the indicator dropping to its lowest level in nearly three years. Bitcoin has fallen 36% from its all-time high of $126,000 to $80,500, significantly impacting the RSI indicator on higher timeframes. On the weekly chart, the RSI has fallen from a local high of 64 in September to the current 35, a level last seen in January 2023, when Bitcoin was trading around $15,500-$17,000. Analyst Jelle stated, “Historically, when the weekly RSI hits this level, it’s worth paying attention.” He added, “Either we are approaching the bottom, or we will soon experience a larger decline.” Mister Crypto noted in a Friday X post that Bitcoin’s Stochastic Relative Strength Index (Stochastic RSI) shows the deepest oversold level in the entire cycle, indicating that “the possibility of a short-term rebound is very high.”