BTC overview - Will we make another huge bounce from here?
In this analysis, we discuss BTC on the weekly timeframe in correlation with the RSI and the Stochastic RSI. Is BTC able to bounce from these levels, or are we heading to lower levels before the next bounce? I will explore this in the following analysis.
After a long consolidation in 2024, BTC reached a new all-time high (ATH) at the end of 2024/beginning of 2025. However, by making a new ATH, BTC formed a bearish divergence with the RSI—similar to what happened in 2021 when BTC reached a new ATH.
At the moment, BTC's price action looks very healthy. It is making new highs and higher lows. During the recent correction from nearly 110K, the RSI dropped to around 44, a strong support zone for the RSI in this bull market. The last two times the RSI bounced from the 44 level, BTC saw an increase of approximately 180% and 100%. In both instances, the Stochastic RSI was also oversold and bounced back to the overbought zone.
Currently, BTC is heading toward the support level at 73K, which aligns with the Golden Pocket, while the RSI holds support at 44 and the Stochastic RSI remains oversold.
It is crucial that BTC maintains support at 73K and the RSI at 44. If either one breaks, lower levels are highly likely.
If BTC finds strength at these support levels, we need to see the RSI break above 79. This would indicate the end of the bearish divergence and open the door for higher prices. However, if BTC reaches a new ATH and the RSI fails to break 79, we must watch for a continuation of the bearish divergence.
Can Bitcoin hold this level and make a significant bounce, as it did the last two times, with BTC at support, RSI at support, and the Stochastic RSI in the oversold area? The coming weeks may provide a signal on the direction BTC will take—bullish or bearish. For now, it could go either way, and we must wait for a clear market direction.
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After a long consolidation in 2024, BTC reached a new all-time high (ATH) at the end of 2024/beginning of 2025. However, by making a new ATH, BTC formed a bearish divergence with the RSI—similar to what happened in 2021 when BTC reached a new ATH.
At the moment, BTC's price action looks very healthy. It is making new highs and higher lows. During the recent correction from nearly 110K, the RSI dropped to around 44, a strong support zone for the RSI in this bull market. The last two times the RSI bounced from the 44 level, BTC saw an increase of approximately 180% and 100%. In both instances, the Stochastic RSI was also oversold and bounced back to the overbought zone.
Currently, BTC is heading toward the support level at 73K, which aligns with the Golden Pocket, while the RSI holds support at 44 and the Stochastic RSI remains oversold.
It is crucial that BTC maintains support at 73K and the RSI at 44. If either one breaks, lower levels are highly likely.
If BTC finds strength at these support levels, we need to see the RSI break above 79. This would indicate the end of the bearish divergence and open the door for higher prices. However, if BTC reaches a new ATH and the RSI fails to break 79, we must watch for a continuation of the bearish divergence.
Can Bitcoin hold this level and make a significant bounce, as it did the last two times, with BTC at support, RSI at support, and the Stochastic RSI in the oversold area? The coming weeks may provide a signal on the direction BTC will take—bullish or bearish. For now, it could go either way, and we must wait for a clear market direction.
Thanks for your support!
Drop a like and leave a comment to have a conversation about this topic. Make sure to follow me so you don’t miss out on the next analysis.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.