As the weekend began, Bitcoin found itself battling to regain the psychologically important $60,000 level. The cryptocurrency managed to reclaim this threshold, and as volatility eased compared to previous days, some technical indicators on short-term charts began to support expectations of a potential recovery.
RSI indicator draws renewed attention
Among the most closely watched technical data in the crypto market is the Relative Strength Index, or RSI, which generated notable signals during Bitcoin’s recent wave of declines. On hourly charts, the formation of higher lows indicated that buyers were stepping in at key levels. Meanwhile, on four-hour charts, while price made lower lows, the RSI showed higher lows—a classic bullish divergence that could hint at a possible market reversal.
A trader known by the pseudonym Rod compared the current market structure to the final phase of the 2022 bear market. In his post on X, Rod argued that the current pattern is reminiscent of historical market bottoms.
Rod observed that once the similarity in the chart structure is recognized, it becomes increasingly difficult to ignore its implications.
Back in 2022, a bullish divergence on the weekly RSI coincided with Bitcoin forming a bear market low around $15,600. Because of this precedent, some analysts are closely monitoring the emergence of a similar technical pattern now, seeing it as a potential signal for the formation of a durable price floor.
Mini glossary: The RSI is a technical indicator that measures the speed and strength of an asset’s recent price movements. Bullish divergence occurs when prices hit new lows, but the indicator itself shows a stronger performance, often foreshadowing a potential trend reversal.
Analysts focus on $60,000 support
Earlier in June, the four-hour RSI for Bitcoin dropped to 11.4, marking one of the lowest levels on record. The subsequent recovery attempt has been interpreted by technicians as a market trying to rebound from oversold conditions.
Crypto analyst Lukasz Wydra noted that bullish RSI signals have also been confirmed on the daily timeframe. In the same post, Wydra emphasized that price defense around $60,000 remains evident on Binance, the world’s largest crypto exchange by trading volume.
Lukasz Wydra commented that the bullish RSI divergence is now officially confirmed in Bitcoin’s chart, adding that while the divergence may deepen further, the defense of price levels on Binance is clearly visible.
Wydra described this technical pattern as an encouraging signal. However, not all traders share this optimism. Despite the short-term rally, some believe that downward pressure has not been fully eliminated and warn that the market may not be out of the woods yet.
Calls for lower levels persist
Niels Klaver, co-founder of STABL Agency, reiterated his view that Bitcoin could drop to $55,000 before making a significant move, underscoring continued caution even after the recovery above $60,000.
Trader and analyst Rekt Capital pointed out that July often sees an opposite performance to June, raising the prospect of a relief rally next month. However, he cautioned that with the 50-month exponential moving average now confirmed as resistance, any July rebound could be short-lived, and a weakening of the $60,000 support in August might trigger further declines.
