Bitcoin (BTC) Oversold RSI Playbook: Data-Backed Path Signals Cycle Extension Into 2026 and Declares 4-Year Cycle Dead | Flash News Detail | Blockchain.News
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12/17/2025 10:49:00 PM

Bitcoin (BTC) Oversold RSI Playbook: Data-Backed Path Signals Cycle Extension Into 2026 and Declares 4-Year Cycle Dead

Bitcoin (BTC) Oversold RSI Playbook: Data-Backed Path Signals Cycle Extension Into 2026 and Declares 4-Year Cycle Dead

According to @Andre_Dragosch, the shared model shows the average BTC path after the Relative Strength Index drops below 30 at t=0, with price action so far closely tracking the historical trajectory, which is relevant for timing entries after oversold conditions and managing risk during recoveries; Source: @Andre_Dragosch on X, Dec 17, 2025, citing @BittelJulien and GMI. According to @Andre_Dragosch, the view presented rejects the traditional 4-year Bitcoin cycle, arguing the cycle has been broken and likely extends well into 2026 based on business cycle work, current financial conditions, and expected liquidity, which supports a medium-term bullish bias; Source: @Andre_Dragosch on X, Dec 17, 2025, citing @BittelJulien and GMI. According to @Andre_Dragosch, the rationale ties the prior 4-year rhythm to the public debt refinancing cycle rather than the halving, noting an increase in the weighted average maturity of the debt structure and large interest expense needing monetization as structural liquidity drivers, which is constructive for BTC risk allocation; Source: @Andre_Dragosch on X, Dec 17, 2025, citing @BittelJulien and GMI. According to @Andre_Dragosch, traders should expect base-building with choppy ranges before a larger up-move, favoring a disciplined accumulation approach and patience, aligning with the “stay humble and stack sats” mindset for DCA and position adds on dips; Source: @Andre_Dragosch on X, Dec 17, 2025, citing @BittelJulien and GMI.

Source

Analysis

In the ever-evolving world of Bitcoin trading, seasoned analysts like Julien Bittel are providing crucial insights that could shape your next moves in the crypto market. According to a recent update from Bittel, shared widely on social platforms, Bitcoin's price trajectory following an oversold Relative Strength Index (RSI) reading is tracking historical patterns remarkably well. This analysis emphasizes trusting the process, staying humble, and continuing to accumulate Satoshis— the smallest units of BTC— amid market volatility. For traders eyeing long-term positions, this perspective suggests that the current bull market may extend well into 2026, challenging the traditional four-year cycle narrative that many BTC enthusiasts swear by.

Understanding Bitcoin's RSI-Driven Recovery Path

Diving deeper into the technicals, Bittel's chart illustrates the average Bitcoin price path after the RSI dips below 30, marking an oversold condition at time zero. As of the latest observations on December 17, 2025, this trajectory has been spot-on, offering a roadmap for potential upside. Traders should note that while perfection isn't guaranteed, this model assumes the bull market persists, driven by broader economic factors rather than the halving events. Key here is the shift away from the four-year cycle, which Bittel attributes to changes in the public debt refinancing cycle post-COVID. With the weighted average maturity of debt extending, the cycle is deemed broken, paving the way for prolonged liquidity that could fuel BTC's growth.

Trading Implications of a Broken Four-Year Cycle

For those analyzing BTC/USD or BTC/ETH trading pairs, this broken cycle implies extended basing periods with choppy price action before major breakouts. Historical data points to bases forming over time, often accompanied by volatility that tests trader patience. If you're stacking Sats, consider dollar-cost averaging strategies during these dips, as on-chain metrics like increasing holder accumulation could signal strengthening fundamentals. Without real-time price data, focus on sentiment indicators: Bitcoin's market cap dominance and trading volumes on major exchanges often correlate with such recoveries. Expect potential resistance levels around previous all-time highs, with support found in oversold RSI zones, making this an opportune moment for swing traders to monitor for bullish divergences.

Broader market correlations add another layer. As financial conditions evolve with rising interest expenses outpacing GDP growth, liquidity injections could bolster risk assets like Bitcoin. Institutional flows, evident in ETF inflows and corporate treasury allocations, support this thesis. Traders should watch for cross-market signals, such as stock market rallies in tech-heavy indices influencing AI-related tokens, which often move in tandem with BTC. In a scenario where the bull run stretches to 2026, position sizing becomes critical— avoid overleveraging during chop, and use stop-losses below key moving averages like the 200-day EMA to manage risks.

Strategic Advice for Bitcoin Traders

Ultimately, Bittel's message is clear: if you believe the Bitcoin bull market is intact, this RSI trajectory chart serves as a valuable guide. Dismiss it only if you're bracing for a prolonged bear phase. For proactive traders, integrate this with volume analysis; look for spikes in 24-hour trading volumes exceeding average levels as confirmation of upward momentum. On-chain data, such as rising active addresses and hash rate recoveries, further validates the stacking strategy. In the context of global liquidity, Bitcoin's role as a hedge against debt monetization grows, potentially driving prices toward new highs. Stay informed, trade smart, and remember that humility in the face of market uncertainty often leads to the best outcomes. This analysis, rooted in expert views from December 2025, underscores the importance of patience in crypto trading, where long-term conviction can outperform short-term noise.

André Dragosch, PhD | Bitcoin & Macro

@Andre_Dragosch

European Head of Research @ Bitwise - #Bitcoin - Macro - PhD in Financial History - Not investment advice - Views strictly mine - Beware of impersonators.