Bitcoin has once again entered a critical technical zone,with its price fluctuating near $114,000 as traders await a decisive move.A key indicator,the Relative Strength Index (RSI),is flashing conflicting signals,pointing to a possible pullback to $95K or a rebound past $119K.In this article,we break down what the Bitcoin RSI Signals is telling us and what both bullish and bearish traders should watch next.
Bitcoin Market Snapshot: August 2025
As of early August,Bitcoin (BTC) is trading at approximately $114,157 up 1.2% over the past 24 hours.The broader crypto market is showing mild optimism,with Ethereum,Cardano and XRP also seeing modest gains.
Driving this cautious rally is growing speculation that the U.S Federal Reserve may cut interest rates as early as September,a shift that typically boosts risk on assets like Bitcoin. ETF inflows are also playing a key role in propping up BTC,with institutions pouring $12–13 billion into Bitcoin ETFs in July alone.
What Is RSI and Why Does It Matter?
The Relative Strength Index RSI is a momentum oscillator used by traders to assess whether an asset is overbought or oversolds.It ranges from 0 to 100,with levels above 70 signals overbought condition and level below 30 indicating oversold territorys.
Currently,Bitcoin’s 14-day RSI is hovering around 48–50 placing it squarely in neutral territory.This suggests the market lacks clear direction and the next move could be sharp either to the upside or downside.
Bearish Case: $95K Pullback on the Table
Despite current stability, several signals are flashing red:
- Support levels at $112.5K and $110K are under pressure. If these break,BTC could slip toward the psychological $95K level.
- Historically,August has often brought corrections,sometimes referred to as the “August Curse” in crypto markets.
- Author Robert Kiyosaki, known for bullish crypto views,recently stated he would buy more BTC if it dips below $90K suggesting he’s anticipating a potential correction.
- The RSI has failed to climb above 55 in recent sessions,showing weakening bullish momentum.
If BTC breaks below $110K with declining RSI,it could trigger a cascade toward $100K,then $95K.
Bullish Case:Rebound to $119K and Beyond?
On the flip side,there are plenty of arguments for a bullish breakout:
- Key resistance at $116K to $119K is within reach.A sustained move above this could push BTC into the $130K–$140K range.
- Institutional demand is surging,with Bitcoin ETFs seeing record inflows.
- Some analysts predict Bitcoin could hit $150K to $200K by year end if macro conditions align.
- A rising RSI above 55–60 would confirm strengthening buying pressure and may flip the momentum back in bulls’ favor.
A daily close above $119K with RSI climbing could be the green light for the next leg up.
Scenarios to Watch:RSI Is Key
| Scenario | RSI Behavior | Price Movement |
| Bearish | RSI dips below 45 | BTC drops to $110K,then $95K |
| Neutral | RSI stays 45–50 | Range-bound between $112K–$116K |
| Bullish | RSI climbs above 55 | Breakout to $119K,target $130K+ |
Traders should monitor RSI for any divergence from price especially if RSI remains flat while price attempts to rally (bearish divergence) or vice versa.
Strategy Tips for Traders and Investors
- Short Term Traders:Be cautious near $116K resistance.Consider setting alerts for RSI crossing key thresholds.
- Long Term Investors:Dips toward $110K or lower may present strong accumulation opportunities,especially if RSI hits oversold zones.
- Volatility Triggers:Watch for macro announcements,ETF regulatory updates,or unexpected geopolitical news that could shake up the trend.
Final Thoughts:The Calm Before the Storm?
Bitcoin’s RSI is currently caught in a tug of war between buyers and sellers,mirroring the indecision in broader markets.While the neutral RSI suggests calm,history tells us that this kind of silence often precedes a major move.
Will Bitcoin drop to $95K,giving bears their moment? Or will bulls take charge and drive it beyond $119K into new highs?