Bitcoin RSI Divergence Revives 2022-Style Bottom Talk

Bitcoin traded with reduced volatility after briefly moving back above $60,000 over the weekend as chart-based signals drew attention from traders and analysts.

Price data showed higher short-term swing lows on hourly charts while the relative strength index (RSI) produced improving readings. On the four-hour chart a bullish divergence formed, with RSI making higher lows even as price registered lower lows. The four-hour RSI fell to about 11.4 at the start of June, one of its lowest readings on record, before the current pattern emerged.

A pseudonymous trader posting as Rod shared a chart comparing current conditions with 2022 and wrote on social media: “Once you see it, you can’t unsee it.” The same poster added, “It’s 2022 again.” In 2022 a weekly RSI bullish divergence appeared as Bitcoin reached a bear-market low near $15,600.

Crypto analyst Lukasz Wydra wrote that the bullish RSI divergence had been confirmed on the daily timeframe and described the pattern as “an encouraging sign,” adding that exchange activity suggests Binance has been defending the price.

Other market participants expect further downside before a durable trend change. Niels Klaver, cofounder of STABL Agency, predicts a move back toward $55,000 before a larger shift in market structure. Analyst Rekt Capital wrote that a relief bounce could occur in July, followed by renewed weakness in August if Bitcoin fails to clear the 50-month exponential moving average and if $60,000 weakens as support.

Analysts will be watching whether buyers can hold the $60,000 area and whether price breaks key moving averages. They say confirmation from higher-timeframe momentum, trading volume and exchange flow would be needed to support any sustained advance.