Bitcoin is exhibiting divergent technical signals as it consolidates near $65,000 on daily charts. However, the weekly chart shows six consecutive lower closes and a record-low RSI below 25, signaling extreme oversold conditions. Analysts note a surge in short-side liquidity around $70,000 while renewed ETF inflows and a positive Coinbase Premium Index suggest U.S. investors are treating the pullback as a buying opportunity.
Bitcoin is showing conflicting technical patterns across different timeframes. While its daily chart shows resilient consolidation near $65,000, the weekly chart reveals a pronounced bearish structure.
The asset has closed lower for six consecutive weeks. Its weekly Relative Strength Index has plunged below 25, hitting an all-time low and indicating extreme oversold conditions.
Short-side liquidity has grown significantly, with analysts pointing to a dense cluster of downside bets around the $70,000 level. This crowded positioning suggests the market may be set for a volatility trap.
Counteracting this bearish momentum, ETF flows have returned to net inflows, with $257 million recorded. The Coinbase Premium Index has also swung positive, reclaiming levels last seen during a late Q4 rally.
This aligns with the CPI jumping 125% to 0.01 and an oversold RSI, signaling that U.S.-based investors are treating the current Bitcoin chop as healthy consolidation rather than a sell-off. The combined data points create a scenario where overly bearish sentiment could be vulnerable to a sudden shift.
