Bitcoin Reaches $119.5K: RSI Points to a Pullback

Bitcoin Reaches $119,5K But RSI Points to Impending Pullback

3 October 2025 at 10: 55

Reading time: 2 minutes

Recent price development of Bitcoin (BTC) paints an intriguing picture for both investors and analysts. Over the past week, Bitcoin's price has seen a remarkable surge of nearly 10%, peaking above $119,500. This raises the question of whether we are now facing a short-lived pullback, possibly preceded by a resurgence of support levels. Trader sentiment is mixed; while price indices indicate Bitcoin is "overbought," signals of a sustained bullish trend remain.

The Relative Strength Index (RSI) is currently in an overbought phase, reaching nearly 90, its highest four-hour reading since July of this year. This indicates that demand for Bitcoin has increased significantly recently, but overbought values could also be a precursor to a potential price reversal. A trader named Roman noted on social media that current price movements suggest a pullback and retest of support levels are likely. Indicators such as volume, RSI, and MACD support expectations of a further rise to around $124,000, despite the recent market overheating. However, the fluctuating value on both daily and weekly time frames indicates that the RSI has remained in overbought territory during previous bull markets, suggesting caution when predicting trends.

ETF Influence on the Bitcoin Market

A quick glance at Bitcoin Exchange-Traded Funds (ETFs) further illustrates the current bullish momentum. Specifically, the iShares Bitcoin Trust (IBIT) has seen an impressive $600 million in net inflows in recent weeks, matching total inflows of $1.6 billion across the entire US ETF market. This not only confirms the growing interest in Bitcoin but also impressively bolsters IBIT's position, which now ranks among the top 20 largest ETFs by asset base. Bloomberg Intelligence analysts confirm that if the trend of the past 12 months continues, it may not be long before IBIT reaches the threshold of the top 10 ETFs. This reinforces Bitcoin's potential as a long-term investment, although competition from other ETFs could impact its progress.

Considering the current price movements and the influence of ETFs, it seems important for investors to adopt a nuanced strategy. The upward pressure of the Bitcoin market cannot be ignored, but it's crucial to take overheating signals seriously and handle any pullbacks tactically. Investing in crypto markets always carries risks, and in light of the current situation, it's advisable to remain alert to both technical indicators and fundamental market developments.

Frequently Asked Questions

What are the key signs that Bitcoin might be undergoing a pullback?
The Relative Strength Index (RSI) is currently in overbought territory, which often signals a potential pullback. Historically, when such levels are reached, it can signal the start of a price reversal.

How do Bitcoin ETFs impact the market?
Bitcoin ETFs, such as the iShares Bitcoin Trust, have seen significant net inflows, with billions invested in recent weeks. These inflows contribute to the overall bullish sentiment surrounding Bitcoin, although competition from other ETFs remains important.

What should investors consider given current market developments?
Investors should be aware of recent price movements and signs of market overheating. A strategic approach, considering both technical and fundamental indicators, is crucial for making the right decisions in this volatile environment.

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