Bitcoin traders are anticipating a short-term price bounce due to a significant dip in the Relative Strength Index (RSI) of BTC/USD. After peaking at 81.7 on January 6, the hourly RSI plummeted to 16.6, marking a three-month low. This rapid decline indicates a transition from 'overbought' to 'oversold' conditions within just 24 hours, a shift last seen when Bitcoin was priced at $60,000. Traders are using RSI levels, with notable boundaries at 30 (oversold), 50 (midpoint), and 70 (overbought), to predict price movements. Despite January 8's continued price drop, some traders suggest that the negative RSI readings could precede an upward price correction. Predictions remain cautious, with some analysts projecting further declines in Bitcoin's value before any potential recovery post-inauguration of US President-Elect Donald Trump. Bearish targets mentioned include a possible return to around $90,000, while some believe new all-time highs could eventually follow a market bounce.

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