Following a dramatic 12% decline, Bitcoin’s price performance has raised eyebrows in the crypto community. This significant drop surpassed the S&P 500’s modest 1.6% dip, sparking discussions about potential oversold conditions and a possible relief rally. While markets have been volatile, Bitcoin’s steeper fall could suggest a market correction is underway. Historically, such drops often trigger short-term price rebounds known as relief rallies. This might be driven by traders buying into perceived lows. Analysts are keeping an eye on technical indicators like the Relative Strength Index (RSI) and MACD for confirmation of overselling. Factors like inflation data, interest rate decisions, and global risk sentiment also play a crucial role in Bitcoin’s future price action. While these factors will significantly influence the market, recent trends suggest a potential relief rally is possible if overall market sentiment improves.