Bitcoin RSI Improves As Market Fragility Persists

The weekly RSI of bitcoin returns to an area that the market watches closely. This signal recalls a configuration that appeared at the end of the 2022 bear market, without yet providing proof of a reversal. In a still fragile context, this technical reading reignites the debate on bitcoin’s trajectory and the market’s ability to turn an early signal into a lasting recovery.

Bitcoin RSI revives a long-watched signal

Bitcoin sends a technical signal that could mark a long-term bottom, as its weekly RSI returns to an area deemed sensitive by several analysts. Trader Jelle sees the possible formation of a higher low on the indicator. This element draws attention because it suggests a potential bullish divergence between price and momentum, in a market that has not yet validated a clear recovery.

The interest of this signal also lies in its historical precedent. A comparable configuration appeared at the end of the 2022 bear market, before a bullish phase that lasted more than a year. This parallel does not confirm an identical scenario. However, it provides a useful benchmark to read the current situation and strengthens the attention paid to the evolution of the weekly RSI.

• Jelle summarizes : “when bitcoin’s weekly RSI forms a higher low again, it’s time to start paying attention”. This phrase places the weekly RSI at the center of the analysis, much more than the exact shape of the next price move ;

• The analyst adds : “it doesn’t matter whether bitcoin marks a higher low, an equivalent low or a lower low”, before adding : “when the RSI starts to rise again, the bottom will be very close, or already reached”. This reading is presented as the most constructive technical signal of the moment on the weekly timeframe ;

• Bitcoin “signals a possible long-term bottom”, while still using cautious wording: it is a signal to watch, not a definitive confirmation of a reversal.

The market remains fragile despite this constructive warning

Jelle does not consider the current decline to be an already purged episode. He recalls that “previous bear markets all lasted about a year”, and he notes that bitcoin “reached its peak only 23 weeks ago”. His position is clear: “I’m not in a hurry to reposition myself for buying”.

This caution prevents presenting the current decline as a phase already over. Another technical figure remains under watch: a possible bear flag, interpreted as a weakness signal that could open the way to a further support break, in a configuration close to that observed in January.

The 200-week EMA, a moving average, had been reclaimed as support in March 2023, when the market was exiting its previous bearish phase. However, it was lost again last month and an analysis even described it as “unreliable”.

The signal sent by the RSI is not enough at this stage to dispel doubts about the market structure. A long-term indicator becomes interesting again, but the bitcoin price is still evolving amid figures and technical levels that prevent any clear reading of the ongoing movement.