Bitcoin Momentum Gauge Suggests Possible Recovery, but Experts Remain Cautious

Bitcoin's momentum gauge has hinted at a potential recovery in the cryptocurrency market. According to data, the 14-day Relative Strength Index (RSI) has dropped below 30, indicating oversold conditions. This reading has previously marked interim or temporary price bottoms, with notable instances in early February, November 2025, late February 2025, and August 2024.

However, not all analysts are optimistic about a sustainable rebound. Monarq Asset Management has warned that the market is ripe for a capitulation move, citing regulatory uncertainty and weakening institutional bids. QCP Capital also noted a spike in Bitcoin's implied volatility, suggesting that investors are increasingly concerned about potential price drops.

To restore bullish sentiment, some analysts believe that Bitcoin needs to hold above $67,000. This level has been identified as a crucial support point, with any break below it potentially triggering a sell-off to $45,000 or lower.