Bitcoin has entered its strongest overbought zone since November 2024, with the Relative Strength Index climbing to the 84–86 range after a sharp breakout, while Ethereum and Ripple have also flashed overbought readings on daily timeframes. The momentum surge has prompted traders to question whether the latest crypto rally is due for a short-term pause or a deeper correction.
According to market data, Bitcoin recently broke above its prior trading range of $62,000 to $71,000 and surged as much as 12% within one to two days, briefly approaching the $80,000 level. This move triggered more than $3 billion in short liquidations within 24 hours, accelerating the upside as bearish positions were forced to close.
In the latest technical outlook, Bitcoin’s RSI is cited near 75–86 depending on the timeframe, while Ethereum’s daily RSI has risen to about 72 and Ripple’s to about 78. All three assets have recorded double-digit percentage gains over the past month, supported by institutional inflows, positive regulatory news, and broader market optimism.
Key support levels are now in focus: $77,000 is considered critical for Bitcoin’s short-term uptrend, with additional Bitcoin support around $60,000. Ethereum traders are watching $2,800, and Ripple traders are monitoring $0.55. The absence of a bearish divergence between price and RSI currently suggests the broader trend remains intact, but the risk of a pullback is elevated.
Momentum indicators do not guarantee a reversal, but they indicate buying pressure may be exhausted in the near term. Market participants are also keeping an eye on Federal Reserve policy and regulatory developments, which remain key external drivers for crypto volatility. For now, the rally has paused, and analysts suggest avoiding chasing momentum at overbought levels while monitoring whether prices hold above support.
