- Bitcoin‘s weekly relative strength index is nearing a crucial position that could signal the next long-term bottom for the asset.
- Analyst Jelle argues the RSI needs to form a “higher low” while price may not have to follow, repeating the pattern that preceded the early-2023 rebound.
- Given that previous bear markets lasted about a year, and the current comedown is only 23 weeks old, the trader is “not in a rush” to reenter the market.
- A separate chart suggests a bear flag formation remains in play, indicating potential for further downside pressure.
Cryptocurrency traders are scrutinizing Bitcoin‘s technical charts as its weekly relative strength index approaches a critical juncture for determining the fate of the ongoing bear market. According to new analysis, a bullish divergence on this key indicator could signal that the bottom is very close or already in.
However, the RSI must first make a higher low, according to observations shared by trader Jelle. He noted that this pattern does not require BTC price to mirror the move, stating “Doesn’t matter if BTC makes a higher low, equal low, or lower low”. Consequently, when the RSI starts moving higher again, historical trends suggest a major inflection point is imminent.
Meanwhile, the comedown from all-time highs remains relatively young, lasting just 23 weeks. Jelle told X followers that previous bear markets all lasted around a year, leading him to conclude “I’m not in a rush to buy back in”. A separate chart also drew attention to a possible bear flag formation still developing on the price chart.
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