Bitcoin Weekly RSI Approaches 2022 Bear Market Low, Liquidity Squeeze Intensifies Bull-Bear Battle

Odaily News According to a Cointelegraph report, against the backdrop of thin holiday trading in global markets, Bitcoin briefly surged to $70,000 before quickly retreating, with prices oscillating within a narrow range, leading to a "liquidation-style" squeeze on both long and short positions.

Data shows that order book depth decreased during the holiday period, making large capital flows more influential on short-term price movements. Over the past 4 hours, total liquidations across the network reached $120 million. The order book repeatedly saw buy/sell walls being swept and rapidly rebuilt, with increased selling pressure above the current price exacerbating short-term downward pressure. Data analytics firm Material Indicators described the current price action as "a mix of breakout and washout."

On the technical front, Bitcoin's weekly Relative Strength Index (RSI) has fallen to 27.8, its lowest level since June 2022, breaching the 30 "oversold" threshold. Analysis points out that historically, in 2015 and 2018, the weekly RSI reaching this zone preceded the formation of cyclical bottoms. In 2022, after touching bottom, the market experienced roughly 5 months of sideways consolidation before the macro bottom was ultimately established.

Although the current price action may not perfectly replicate historical patterns, the weekly RSI once again approaching the "cycle-level low" zone is seen as a significant reference signal for the current market phase.