Bitcoin (BTC) has developed a rare relative strength index (RSI) gap on its weekly chart, a technical indicator that previously had a rally of more than 700%.
The weekly bullish RSI divergence emerged on the promotion of BTC following criticism from the 2025 high above $120,000, indicating that the selling pressure may reduce and repeat the things seen near 2022 under the bear market.
Weekly chart shared by expert Ali Martinez in X post on July 18 it shows Bitcoin printing a low price while the RSI is where the high low.
This creates a bullish divergence, a pattern that usually indicates a decrease in bearish power and the possibility of a reversal in the stock.
The analysis showed a striking similarity to Bitcoin’s 2022 bottom. During that time, BTC established a new low near $16,000 before starting a rally that eventually crossed 700%.
This pattern shows a similar gap that is expanding near the $58,000 to $60,000 area, where the RSI has started to rise from oversold areas.
Additionally, the indicator has rebounded from around the 30 level, indicating that the bullishness is improving even though prices are still holding. According to the analysis, this is the second time that this gap has appeared on the weekly chart of Bitcoin since the 2022 low.
However, technology analysts warn that the difference alone will not guarantee the end. Bitcoin still needs to bounce back from major resistance levels before a major bullish trend is confirmed.
As things stand, $65,000 is an important level, and a sustained move above this level reinforces the bullish trend.
Basics of Bitcoin
The bullish setup comes in the midst of major challenges, with Bitcoin trading in a range of like money measuring inflation rates, Federal Reserve policy expectations, and geopolitical risks. Despite this, BTC has remained strong, returning to $65,000 on weak US inflation data and new ETF positions.
Institutional demand remains an important topic. The main owners acquired more than 270,000 BTC worth about $16.7 billion in two weeks despite the high demand. ETF exit, a difference that has already appeared near the capital markets.
Although the current situation is similar to the establishment before Bitcoin recovered from its 2022 low, the current market is very large and controlled by institutions.
As a result, repeating a 700% meeting may require more money than it has in the past.
Bitcoin price analysis
As of press time, a crypto currency was trading at $64,260, up about 0.3% in the last 24 hours and 0.45% for the week.
Bitcoin technical trends remain relatively stable in the short term. At current levels, the cryptocurrency is trading above its 50-day SMA of $63,596, indicating a long-term bullish momentum. However, it remains below the 200-day SMA of $73,203, meaning that the spread has not changed yet.
Currently, the 14-day RSI stands at 55.09, a neutral reading that indicates buying momentum without indicating oversaturation.
