BroadChain has learned that Bitcoin's Relative Strength Index (RSI) is nearing a critical threshold, according to a March 20 report from Cointelegraph. Market participants are closely monitoring whether it forms a "higher low," which could confirm the potential for the ongoing uptrend to continue.
Historical patterns indicate that Bitcoin bear market bottoms often coincide with bullish divergences in the weekly RSI. Analyst Jelle pointed out that once the weekly RSI establishes another higher low, the market will enter a crucial observation period. Even if prices have further room to fall, a rising RSI frequently signals that a bottom is approaching—or may already be in place.
Looking back, the last bullish RSI divergence occurred near the end of the 2022 bear market, which preceded a rally that lasted more than a year. During that period, traders also watched for Bitcoin to reclaim the 200-week Exponential Moving Average (EMA) as a major support level—a milestone finally reached in March 2023.
Under the current market structure, while the bearish flag pattern remains technically intact, several key technical indicators are already flashing potential reversal signals.