Bitcoin continued its struggle to regain the $60,000 level as we entered the weekend. As the price returned above this threshold, volatility calmed down compared to previous days and some technical signs supporting the recovery expectation came to the fore on the short-term charts.
RSI indicator is on the agenda again
The relative strength index, or RSI, which is one of the most followed data in the market, produced remarkable signals in the last decline wave. The formation of higher lows on the hourly charts indicated that buyers were activated at certain levels. On the four-hour chart, the RSI produced higher lows while the price made lower lows, creating the appearance known as bullish divergence.
The pseudonymous trader Rod compared the current market structure to the last part of the 2022 bear market. Rod argued in his X post that this view is similar to the bottom structure seen in the past.
In his assessment of the current chart structure, Rod noted that once this appearance is noticed, it becomes difficult to ignore.
The bullish divergence in the weekly RSI during 2022 coincided with Bitcoin forming the bear market bottom at $15,600. Therefore, some analysts are carefully watching the re-emergence of a similar technical structure for the possibility of a permanent bottom forming.
Mini dictionary: RSI is a technical indicator that measures the speed and strength of recent price movements of an asset. Bullish divergence is used when the indicator displays a stronger appearance while the price makes a new low and may indicate a possible direction change.
Analysts focused on $60,000 defense
The four-hour RSI’s decline to 11.4 at the beginning of June stood out as one of the lowest values on record. The attempt to recover after such a weak reading was technically interpreted as the market trying to get out of the oversold zone.
Crypto analyst Lukasz Wydra stated that bullish RSI signals were also confirmed on the daily time frame. In the same post, Wydra said that it is clearly seen that the price continues to be defended by Binance. Binance is among the world’s largest cryptocurrency exchanges in terms of transaction volume.
Lukasz Wydra noted that the bullish RSI divergence on the Bitcoin chart is now officially confirmed, the outlook may deepen further, but at the same time, the price defense is clearly monitored on the Binance side.
Wydra viewed this technical outlook as an encouraging sign. However, not all names in the market share the same opinion. Some traders think that despite the short-term relief spike, the downward pressure is not completely over.
Expectations for lower levels remain on the table
Niels Klaver, one of the co-founders of STABL Agency, reiterated his view that Bitcoin could drop to $55,000 before a big move to change the current balance in the market. This evaluation showed that the cautious approach was maintained despite the return above 60 thousand dollars.
Trader and analyst Rekt Capital, on the other hand, stated that a relief increase could be seen in July, because July performance often goes in the opposite direction to June. However, the analyst argued that this recovery may end in August after the 50-month exponential moving average was confirmed as the new resistance and an additional decline may occur with the weakening of the $60,000 support.
