Bitcoin price analysis (Bearish) — 111975.04 USDT (-2.82% 24h)

Bitcoin is experiencing significant technical pressure as it trades at $111,975, down nearly 3% over the past 24 hours. The most concerning signal comes from the RSI reading of 16.46, indicating severely oversold conditions that typically precede either a strong bounce or continued capitulation. Price currently sits below both the 20-day SMA ($114,338) and 50-day SMA ($114,035), confirming the short-term bearish structure. However, the extreme RSI levels suggest we’re approaching a potential reversal zone. Volume remains substantial at $2.77 billion, indicating active participation in this move. For traders, this presents a high-risk, high-reward scenario. Aggressive traders might consider scaling into long positions here with tight stops below $110,000, while conservative traders should wait for RSI to recover above 30 and price to reclaim the 20-day SMA before entering. The current volatility of 2.5% suggests continued sharp moves are likely.