Bitcoin’s price currently trades at $23,500 as of writing. This is more than 30% higher than the lows, and 10% above the weekly average. After reaching historical highs, the weekly RSI is back in positive territory.
This setup may be the buy signal that bulls are waiting for. The Relative Strength Index is currently looking very similar to the bottom of the bear market.
Daily Bitcoin RSI Continues to Recover from Historical Oversold Conditions
Sometimes less is better in technical analysis. A chart is often filled with lines and indicators by traders who are desperate to have an edge on the market. The truth is that the best edge comes from patience, and following the signals to purchase and sell Bitcoin.
Related Reading: Bitcoin Weekly RSI sets a record for the most oversold transactions in history, what’s next?| Bitcoin Weekly RSI Sets Record For Most Oversold In History, What Comes Next?
The weekly Relative Strength Indicator suggests that the right time to invest in Bitcoin could soon be. Comparing past bear markets suggests that the signal may be near a bottom.
Oversold conditions have been overcome by the Bitcoin Weekly RSI. Source: TradingView.com| Source: BTCUSD on TradingView.com
Oversold conditions have seen the weekly RSI rise to 30. Technical analysts should be able to see the trend and monitor for any further developments.
The RSI generates a buy signal when the indicator reaches the 30th threshold, retraces, holds and then surpasses the first high. The signal was clear at the bottom of the 2018 bear market and it told everyone that the time had come to purchase Bitcoin.
Source: TradingView.com| Source: BTCUSD on TradingView.com
We Could Be In The End Of A Bear Market Bottom
TradingView’s Relative Strength Index includes a moving mean set default at a length 14. After recovering from an oversold condition, Bitcoin prices have reclaimed the moving average.
Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com
Also, the chart shows that the last low in the weekly RSI showed how oversold top cryptocurrency was historically.
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Bitcoin has always risen to new records in the past. But speculative assets may remain overbought and oversold longer than anticipated. Is there a way to make the most of the RSI’s record-breaking low? Is this crypto’s lowest point?
Weekly #BitcoinAn RSI analysis might indicate that the bottom has been reached. You think so? pic.twitter.com/JSdUlbCo3j
— Tony “The Bull” Spilotro (@tonyspilotroBTC) July 19, 2022
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Featured image taken from iStockPhoto. Charts from TradingView.com