Bitcoin's Monthly RSI at Critical Dividing Line—What's Next?

2026-01-12 06:09:05

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Bitcoin is facing a critical technical juncture, with its monthly RSI now hovering at 56.5, perilously close to the historically significant 58.7 dividing line that separates bullish from bearish market conditions. Over the past three months, the cryptocurrency has declined approximately 20%, pushing annual returns into negative territory at -2.63%, reflecting a substantial market correction underway.

CryptoQuant’s technical assessment highlights that the coming 1 to 2 months will serve as a pivotal observation window for traders and investors. The technical landscape presents two potential scenarios: if monthly RSI dips below 55, deeper downside pressure could emerge, signaling sustained weakness; conversely, if the RSI stabilizes within the 55 to 58 range, a rebound attempt may be forthcoming.

This dividing line in the technical indicators represents more than just a number—it’s a threshold that has historically separated prolonged bull markets from bear corrections. With Bitcoin’s current positioning near this critical juncture, market participants are closely monitoring whether the asset can hold support or if further deterioration lies ahead as we enter 2026.

BTC-0,28%

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