The cryptocurrency market is under pressure this week, with inflation fears linked to U.S. tariffs under Donald Trump’s administration weighing on investor sentiment. Bitcoin (BTC) has slipped below $80,000 for the first time since Trump’s re-election, as persistent outflows from Bitcoin spot ETFs add to the selling momentum.
The broader market is also feeling the strain, with nearly $1 billion in liquidations over the past 24 hours, highlighting heightened volatility.
As selling pressure intensifies, traders are closely watching the Relative Strength Index (RSI) for signs of a potential rebound. This key momentum indicator helps gauge overbought and oversold conditions, with a weak RSI (typically below 50) indicating fading momentum—often a precursor to a buying opportunity before a potential recovery.
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An analysis of the RSI heatmap from CoinGlass on February 28 suggests that Bitcoin and XRP are showing signs of a short-term recovery, positioning them as key assets to watch this week.
Bitcoin (BTC)
Bitcoin is flashing a buy signal as its 12-hour RSI dips to 31.93 and its 24-hour RSI plunges to 24.65, firmly in oversold territory. Historically, such weak RSI levels indicate that selling pressure is nearing exhaustion, often setting the stage for a rebound.
With BTC down 12.93% in the past 12 hours, traders anticipating a momentum shift may view this as a prime accumulation phase before a potential recovery. If buying interest strengthens, Bitcoin could stabilize and reclaim higher levels, presenting a key entry point for those positioning for a short-term bounce.
XRP
XRP is signaling a buy opportunity as its RSI remains weak, indicating a potential reversal from current levels. Its 12-hour RSI stands at 35.08, while the 24-hour RSI has dropped further to 32.35, edging closer to oversold territory. With the market’s average RSI at 44.30, XRP is under heightened selling pressure—often a precursor to a short-term price recovery.
Currently trading at $2.1276, XRP is emerging as a high-risk, high-reward opportunity for traders eyeing a rebound. If buying momentum picks up, the asset could stage a short-term recovery, offering a potential upside for those positioning for a bounce.
That being said, while weak RSI levels suggest a potential buying opportunity, RSI alone is not a definitive indicator of a reversal. A sustained recovery will require confirmation through rising trading volume and broader market sentiment.
Traders should stay vigilant, monitor key technical levels, and remain flexible in their strategies as momentum develops.
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