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Why Weekly RSI Could Suggest The Bitcoin Bottom Is In


Bitcoin price is currently trading at around $23,500 at the time of this writing, up over 30% from lows and 10% for the week. The recovery has brought the weekly RSI out of oversold territory after reaching historical levels.

Here is why the setup could be the buy signal bulls have been waiting for, and how the Relative Strength Index currently resembles the last bear market bottom.

Weekly Bitcoin RSI Recovers From Historical Oversold Conditions

In technical analysis, sometimes less is more. Traders commonly fill a chart with lines or indicators, desperately seeking an edge in the market. When in reality, that edge is patience and watching for the right signals to buy and sell Bitcoin.

Related Reading | Bitcoin Weekly RSI Sets Record For Most Oversold In History, What Comes Next?

According to the weekly Relative Strength Index, the time to buy BTC could be near. Comparisons with past bear markets suggest the signal could put in a long-term bottom.


Bitcoin weekly RSI has recovered from oversold conditions | Source: BTCUSD on TradingView.com

The weekly RSI has risen up out of oversold conditions to above a reading of 30. This alone is enough for technical analysts to begin watching for follow-through.

A buy signal on the RSI is generated after the indicator reclaims the lower threshold at 30, retraces, holds, then pushes past the first high. The signal is clear during the 2018 bear market bottom and told the masses it was time to buy BTC.


An example of an RSI buy signal at the 2018 bear market bottom | Source: BTCUSD on TradingView.com

Why The Bear Market Bottom Could Already Be Behind Us

The Relative Strength Index on TradingView includes a moving average set at default to a length of 14. Bitcoin price action reclaiming the moving average after recovering from oversold conditions has in the past put in a significant long term bottom.


The weekly RSI reached the most oversold conditions ever | Source: BTCUSD on TradingView.com

The chart above also demonstrates that the recent low on the weekly RSI was the most oversold the top cryptocurrency has ever reached historically.

Related Reading | Bitcoin Monthly Tags Lower Bollinger Band, Tool’s Creator Hints At Bottom

In the past, Bitcoin has always recovered to new record highs. However, speculative assets can remain overbought or oversold for longer than expected. What happens next in the case of this most recent record low on the RSI? Was this the bottom in crypto?

Weekly #Bitcoin RSI analysis could suggest a bottom is in. What do you think? pic.twitter.com/JSdUlbCo3j

— Tony “The Bull” Spilotro (@tonyspilotroBTC) July 19, 2022

Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice.

Featured image from iStockPhoto, Charts from TradingView.com

Tony Spilotro

Tony Spilotro

I’m Tony Spilotro. Behind the pseudonym, I’m a global remote work leader with a decade of award-winning content experience and excellence. Here, I explore my newfound passions pertaining to privacy, finance, economics, politics, cryptography, property rights, and other libertarian-esque views.I am a Bitcoin evangelist, maximalist, and educator whenever I can be, helping to spread its message of freedom from government control, monetary policy mismanagement, and passing the buck – literally – to future generations.My journey from a curious retail crypto investor to a serious Bitcoin advocate, trader, and technical analyst is an unusual one, but life-changing nonetheless and has become less about money and more about a long-overdue revolution.While a firm believer in the laws governing math and science, I am profoundly fascinated by the impact of astrology and astronomy including moon and solar cycles and planetary alignment and their ability to influence and potentially predict markets. It hasn’t yet clicked for me as to how to put anything to use, but I consider it my current rabbit hole I can’t yet dig out of.My perspective of growing up alongside the internet, the dot com era, the Great Recession, and roots in video games collecting coins and rare items caused Bitcoin to immediately make sense to me.Through all of these lenses, I seek to produce content that is educational and entertaining, and I thank you sincerely for taking the time to read what I have to say.Please follow me on Twitter at @tonyspilotroBTC and feel free to drop me a line if you would like to work together.