Analysis: Bitcoin May Be Approaching a Stage Bottom, Market Focuses on Key RSI Signal

Odaily News Bitcoin's Relative Strength Index (RSI) is approaching a critical zone, with the market closely watching for the formation of a "higher low" to confirm a potential signal for continued upward momentum. Historical data shows that Bitcoin bear market bottoms are often accompanied by bullish divergences on the weekly RSI chart. Trader Jelle stated that once the weekly RSI forms a higher low again, the market will enter a crucial observation phase; even if prices still have room to decline further, as long as the RSI begins to recover, it often indicates that a bottom is near or has already occurred.

Looking back at history, the last time the RSI turned bullish was at the end of the 2022 bear market, which initiated a sustained uptrend lasting over a year. At that time, the market also focused on reclaiming the 200-week Exponential Moving Average (EMA) as a key support level, a move achieved in March 2023. Under the current structure, although the bear flag pattern has not completely invalidated, technical indicators have already released potential reversal signals. (Cointelegraph)