Bitcoin prices are currently trading at approximately $23,500 at the moment of this writing. That’s an increase of over 30% from the lows and 10% for week. After reaching historic levels, the weekly RSI has been able to recover and is now in oversold territory.
Here’s why this setup could be a buy signal bulls are waiting for and how the Relative Strength Index currently looks like the last bear market bottom.
Weekly Bitcoin RSI recovers from historical oversold conditions
Sometimes, less is better in technical analysis. In an effort to gain an advantage in the market, traders often fill charts with indicators or lines. The truth is that the best edge in the market is patience and waiting for the right signals.
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According to the weekly Relative strength Index, it could be a good time to invest in Bitcoin. Comparing past bear markets suggests that the signal could indicate a long-term bottom.
The weekly Bitcoin RSI has rebounded from oversold conditions. Source:| Source: BTCUSD on TradingView.com
Oversold conditions have seen the weekly RSI rise to 30. This alone should prompt technical analysts to start looking for further information.
An indication to buy on the RSI is generated After the indicator has regained the lower threshold of 30 at which point it traces and holds, the indicator pushes beyond the first high. The signal is obvious during the 2018 bear markets bottom. This signals to the masses that it was now time to purchase Bitcoin.
Source:| Source: BTCUSD on TradingView.com
We Could Be In The End Of The Bear Market Bottom
TradingView has a moving mean set at default of 14. Bitcoin price action after recovering from an oversold condition has in the past placed in a significant long-term bottom.
Source:| Source: BTCUSD on TradingView.com
The chart shows that the latest low on the weekly RSI is the highest oversold top cryptocurrency has ever been historically.
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Bitcoin has always risen to new record highs in the past. However, speculative investments can be overbought/oversold for longer times than expected. What next? Is this the bottom of crypto?
Weekly #Bitcoin An RSI analysis could indicate that there is a bottom. 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 Get daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice.
Featured image taken from iStockPhoto. Charts taken from TradingView.com