Understanding RSI in Bitcoin and Ethereum Technical Analysis: Deepening Bearish Trends

RSI (Relative Strength Index) is a key technical indicator used to measure price momentum and determine overbought and oversold conditions. Currently, Bitcoin and Ethereum show extreme bearish signals in daily technical charts, indicating intensified price corrections. Based on the latest market data, let’s analyze the future prospects of these two assets.

RSI (Relative Strength Index): Meaning and Role in Technical Analysis

RSI compares the magnitude of recent gains and losses over a specified period to assess overbought or oversold states. Understanding RSI accurately helps in timing trades.

RSI values range from 0 to 100. Generally, an RSI above 70 suggests overbought conditions (possible price correction), while below 30 indicates oversold conditions (potential rebound). Both Bitcoin and Ethereum now have RSI below 30, signaling extreme bearish momentum.

Bitcoin: Intensifying Technical Weakness, Concerns of Further Decline Near November Lows

Bitcoin started the week strong but failed to break the $90,000 resistance on Wednesday. It then sharply declined, falling below the horizontal support at $85,569, and as of February 25, 2026, is consolidating around $65,430.

Daily technical analysis shows BTC’s RSI at around 29, indicating extreme oversold conditions. This suggests strong bearish momentum. The MACD also experienced a bearish crossover on January 20 and continues to signal negative momentum.

If Bitcoin declines further, it could first test the November low of $80,600. A confirmed daily close below this level might lead to a continued downtrend toward the April 7, 2025, low of $74,508.

Conversely, if Bitcoin rebounds, it could rise toward $85,569 (Fibonacci retracement 78.6%), a significant technical resistance derived from the rally from the April 7 low ($74,508) to the October 6 all-time high ($126,199).

Ethereum: Risk of Major Support Breakdown, MACD and RSI Signal Weakness Simultaneously

Ethereum experienced a sharp correction last week but rebounded early this week. However, it failed to break the resistance at $3,017 on Wednesday. Currently, around $1,920, it has fallen below the key support at $2,749, raising concerns of further downside.

On the daily chart, both RSI and MACD show strong bearish signals. RSI has entered oversold territory below 30, and MACD’s histogram bars are expanding in negative territory.

If Ethereum breaks below the Fibonacci 61.8% retracement level at $2,749 on a daily close, it could decline further toward the November 21 low of $2,623. Falling below this level might trigger a rapid drop toward the psychological support at $2,000.

However, if Ethereum rebounds, it is expected to face resistance at the $3,017 daily high.

Overall Analysis of RSI and MACD Indicators: Outlook for Polarized Assets

Both Bitcoin and Ethereum currently exhibit extreme oversold signals indicated by RSI and bearish crossovers in MACD. While RSI below 30 historically signals a short-term bottom, continued MACD bearishness suggests additional downside risk remains.

Technically, both assets are likely to test support levels in the short term. Oversold rebounds are possible considering RSI signals, but if key supports break, further declines could intensify.