ChainThink News, December 19: According to Cointelegraph, traders anticipate a potential short-term rebound for Bitcoin, as data shows the Relative Strength Index (RSI) for BTC/USD is in an extreme "oversold" condition, having dropped to its lowest level in nearly three years.

Bitcoin has declined 36% from its all-time high of $126,000 to $80,500, significantly impacting the high-timeframe RSI indicator. On the weekly chart, RSI has fallen from a local peak of 64 in September to its current level of 35—a level last seen in January 2023 when Bitcoin was trading around $15,500–$17,000. Analyst Jelle stated: "Historically, when weekly RSI reaches this level, it warrants attention." He added: "Either we are nearing a bottom, or a more substantial downward move is imminent."

Mister Crypto noted in an X post on Friday that Bitcoin’s Stochastic RSI indicates the deepest oversold condition across the entire cycle, suggesting "a very high probability of a short-term rebound."