‎Bitcoin Faces Potential Bearish Pressure as RSI Signals Overbought Conditions

‎BTCUSD Market Analysis – July 26

‎Bitcoin enters a phase of potential short-term bearish pressure as the Relative Strength Index (RSI) signals overbought conditions, despite the continuation of its long-term bullish trend.

‎Bitcoin (BTCUSD) Key Levels

‎Support Levels: $100,300.00, $87,000.00
‎Resistance Levels: $112,000.00, $128,200.00

‎BTCUSD Long-Term Trend: Bullish

‎Since forming a major low in April 2025, Bitcoin has maintained a strong bullish trajectory, climbing steadily to reach the $112,000.00 supply level. Upon arrival at this level, price action encountered its first significant resistance, resulting in a temporary pause and the formation of a trendline resistance.
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‎From mid-May to late June, BTCUSD consolidated between the $112,000.00 supply and the $100,300.00 demand zone. This sideways movement ultimately led to a bullish breakout, propelling the price toward the $128,200.00 level. However, another pause has emerged at this new high, marked by minor consolidation.
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‎Currently, the daily Relative Strength Index (RSI) reveals that Bitcoin has entered the overbought region, suggesting a possible shift toward bearish momentum. This anticipated pullback appears to be unfolding in the form of consolidation. The RSI is now pointing downward, indicating waning bullish strength. Should price remain in consolidation, further decline toward the oversold region is expected, after which a bullish continuation is likely.

‎BTCUSD Medium-Term Trend: Bearish

‎On the 4-hour timeframe, Bitcoin experienced a bearish break of structure as price action closed below the recent consolidation range. This move confirmed the onset of a short-term bearish phase.
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‎At present, a bullish retracement is underway, with price approaching a 4-hour order block. The 4-hour RSI also reflects increasing momentum, supporting a deeper retracement into the order block zone. Once this retracement completes, bearish continuation is anticipated in line with the current medium-term trend.

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