Bitcoin’s price trajectory faces a crucial test as a key technical indicator approaches a pivotal juncture. Analysis suggests a higher low on Bitcoin’s weekly Relative Strength Index (RSI) is needed to signal a potential end to the bear market and allow for bullish continuation, mirroring a pattern last seen in early 2023.
Bitcoin is nearing a critical moment for its long-term price direction as a key technical indicator approaches a major decision point. Analysis suggests the weekly Relative Strength Index (RSI) needs to form a higher low to potentially signal a market bottom and a repeat of its early-2023 bullish rebound, according to new analysis covering the asset.
The trader, Jelle, stated that when Bitcoin’s weekly RSI makes a higher low again, it’s time to pay attention. He noted that price action can still preserve a recovery whether Bitcoin makes a higher, equal, or lower low, explaining that “When RSI starts moving higher again, the bottom is very close – or already in.”
RSI last flipped bullish at the end of Bitcoin’s 2022 bear market, preceding over a year of upside. The indicator’s current position follows Bitcoin losing its 200-week exponential moving average support last month, an event analysis had previously called “unreliable.”
Jelle is among those noting previous bear markets typically lasted around a year, compared to the 23 weeks since Bitcoin’s recent peak. He told followers he is “not in a rush to buy back in.” A separate chart highlighted a possible bear flag formation that could result in fresh support failure similar to January.
