Bitcoin Flashes Rare Capitulation Signal: Historical Pattern Suggests Rally to $180,000 in 90 Days

Source: CryptoNewsNet Original Title: Bitcoin just flashed a rare capitulation signal that historically triggers a violent rally to $180,000 in 90 days Original Link: Bitcoin trades near $89,000 today after its 14-day relative strength index fell below 30 in mid-November, a threshold traders track for capitulation.

A chart analysis overlays Bitcoin’s recent path with the average trajectory that followed the last five RSI breaks below 30 and traces a route that ends near $180,000 about 90 days after the oversold print.

The $180,000 waypoint is return math. With Bitcoin near $89,000, reaching $180,000 would imply a roughly 105% gain in roughly three months, or about 0.80% compounded daily.

The chart isn’t a forecast distribution but an event-study average, meaning it can mask how different the paths were across those five historical instances.

Doomer evidence for the four year cycle and market top

Price action since October has kept the “cycle” argument active. Bitcoin set an October high at $126,223, then sold off into late November.

The decline reached a low near $80,697 on Nov. 21, a drawdown of about 36% from the October high.

That drop already sits inside the 35% to 55% drawdown band laid out in cycle-timing framing, which mapped a trough zone of roughly $82,000 to $57,000 if the post-halving cadence remains the governing model.

A second analysis focused on $106,400 as a balance point that repeatedly flipped between support and resistance.

Bitcoin has spent weeks below that level into mid-December, which matters for the RSI chart because a move toward $180,000 would almost certainly require acceptance above prior regime pivots rather than only a momentum bounce inside a corrective range.

Flows are a practical cross-check on whether the bounce thesis has fuel. Investors pulled a record $523 million from a major Bitcoin spot ETF on Nov. 19 as Bitcoin slipped below $90,000, and net ETF inflows have all but flatlined since.

Derivatives positioning adds another constraint: where the market is paying for optionality and where dealer hedging can keep spot in a band.

Options market analysis put dealer gamma concentration in a broad $86,000 to $110,000 range, a range that can promote two-way trade as hedges are adjusted and can delay trend moves until spot exits with follow-through.

Per technical dashboards, Bitcoin’s 14-day RSI has mean-reverted to around 40 after the mid-November sub-30 reading, which fits a bounce, while leaving the market sensitive to any renewed selling pressure if flows weaken again.

Is the 4-year cycle dead?

The “four-year cycle is dead” claim rests on macro mechanics rather than halving calendars. It ties cycle timing to public-debt refinancing dynamics and the maturity profile of U.S. borrowing, then connects that to interest expense as a driver of policy and liquidity responses.

Federal government interest payments are tracked as a line item in current expenditures, and interest on the debt is projected to exceed $1 trillion annually.

Liquidity conditions are also central to the 90-day window because the RSI chart’s horizon overlaps with macro lead-lag narratives that traders already use.

The Federal Reserve cut rates to a 3.50% to 3.75% range in December and also announced about $40 billion per month in short-dated Treasury bill purchases (plus reinvestments) aimed at calming year-end funding pressures.

A version of global M2 liquidity shifted by about 90 days is often plotted against Bitcoin to illustrate how liquidity impulses can precede risk-asset repricing, even though the relationship can decouple for long stretches.

Analysis of the M2 correlation, adjusted by exactly 84 days, concludes that during moves up, the M2 line tracks the Bitcoin price path. However, during a downswing, M2 keeps grinding higher while the price diverges.

The counterweight is that RSI can remain extreme and still fail to mark a lasting low.

In practice, that turns the $180,000 path into a gated setup where confirmations matter more than the fact of an RSI breach.