Bitcoin News Today: Bitcoin's RSI Indicates Cycle Restart While Investors Anticipate Fed's Key Decision

Bitcoin Approaches Key Market Turning Point as Velocity RSI Hits Historic Low

Bitcoin’s velocity relative strength index (RSI) has dropped to a level rarely seen, signaling what many analysts interpret as a potential bottom for the current bear market. As Bitcoin’s price edges toward $87,000, this momentum-based indicator has fallen below 10 out of 100—a threshold previously reached only during major market downturns in 2018, 2022, and now 2025. According to On-Chain Mind, a well-known crypto analyst, this reading marks the lowest point since the last three significant market lows, reinforcing its reputation as a reliable signal of momentum exhaustion.

Long/Short Ratio Signals Unusual Market Behavior

Adding to the technical case for a possible bottom, Bitcoin’s long/short ratio has entered unfamiliar territory. Joao Wedson from Alphractal points out that this ratio, which often helps identify price bottoms, has diverged from its historical trends. Despite ongoing declines, long positions have remained elevated for an unusually long period. Wedson cautions that this could prompt major market participants to take advantage of retail traders by pushing prices lower, thereby increasing short-term risks for bullish investors.

Altcoin Market Shows Early Signs of Rotation

Meanwhile, the altcoin sector is beginning to show hints of capital rotation. The ALT/BTC ratio has climbed above 0.25, a level that has historically preceded altcoin rallies, especially following shifts in Federal Reserve policy.

Market Sentiment Remains Cautious Amid Recent Selloff

Despite these technical signals, the overall market outlook remains pessimistic. In November, Bitcoin experienced a dramatic 17% decline—the largest monthly drop in the cryptocurrency’s history—wiping out over $1 trillion in value. This plunge pushed Bitcoin below its 50-week moving average, confirming a bearish trend. Institutional investors have also shown caution, with ETF outflows reaching $3.48 billion for the month. On-chain data reveals that large holders are moving Bitcoin to exchanges and long-term investors are selling, indicating ongoing supply pressure.

Potential for Recovery as Analysts Watch Key Indicators

Despite the prevailing negative sentiment, some experts see reasons for cautious optimism. Shawn Young from MEXC notes that a return of ETF inflows—specifically daily amounts exceeding $200–300 million—could signal renewed institutional interest and the beginning of a recovery. Similarly, Hunter Rogers of TeraHash suggests that December could bring a period of quiet consolidation, with a gradual upward trend possible if market liquidity stabilizes. The current state of the velocity RSI, along with the ALT/BTC ratio’s movement, hints that while risks remain, the market may be approaching a pivotal moment.

Critical Levels to Watch

• Support: Traders are monitoring the $80,400 level as crucial support. A drop below this point could lead to further declines.
• Resistance: A sustained move above $97,100 might invalidate the current bearish pattern and reignite bullish momentum.

For now, the cryptocurrency market stands at a crossroads, with upcoming macroeconomic events likely to play a decisive role in determining Bitcoin’s next direction.