Bitcoin RSI bullish divergences formed the basis for the new bull case, but some market takes warned that new BTC price lows were still to come.
Bitcoin (BTC) continued its battle to reclaim $60,000 into the weekend as chart cues fueled hopes of a recovery.
Data from TradingView showed BTC/USD cooling volatility after returning above the $60,000 mark.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
A series of higher swing lows on hourly time frames combined with encouraging readings from the relative strength index (RSI) indicator.
On the four-hour chart, a bullish divergence was occurring, where RSI makes higher lows while price makes lower lows. This caught the attention of market participants, who began to anticipate a BTC price reversal as a result.
Uploading a chart comparing the current bear market with 2022, pseudonymous trader Rod argued that history was repeating itself.
“Once you see it, you can't unsee it,” they wrote in a post on X.
BTC/USD one-week chart with RSI data. Source: Rod/X
At the time, a weekly RSI bullish divergence kicked in while BTC/USD set its bear-market low of $15,600 — an event that subsequently provided a durable market floor.
Four-hour RSI, meanwhile, fell to just 11.4 at the start of June, marking one of its lowest levels on record.
BTC/USD four-hour chart with RSI data. Source: Cointelegraph/TradingView
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