Bitcoin (Bitcoin(Rare Bullish Relative Strength Index Shape)RSI) on the weekly chart, which is a technical signal that preceded the rise by more than 700%.
A bullish weekly RSI divergence emerged during BTC’s consolidation after correcting from the 2025 highs above $120,000, suggesting that selling pressure may be easing and reversing conditions seen near the 2022 bear market bottom.
Weekly chart shared by analyst Ali Martinez at X mail July 18 shows Bitcoin printing a lower bottom in price while the RSI forms a higher bottom.
This creates a bullish divergence, a pattern that often signals fading downward momentum and the possibility of a trend reversal.
The analysis highlighted a striking similarity to Bitcoin’s bottom in 2022. During that period, Bitcoin recorded a significant low near $16,000 before beginning a rally that eventually exceeded 700%.
The current structure shows a similar divergence developing near the $58,000 to $60,000 region, while the RSI has started an uptrend from the oversold zone.
Additionally, the index has rebounded from levels near 30, indicating that momentum is improving even though price action is still relatively weak. According to the analysis, this is only the second time such a divergence has appeared on Bitcoin’s weekly chart since the 2022 cycle low.
However, technical analysts warn that divergence alone does not guarantee a breakout. Bitcoin still needs to reclaim key resistance levels before a larger uptrend is confirmed.
As it stands, the $65,000 level is an important level, with a continued move above that area strengthening the bullish case.
Bitcoin basics
The bullish setup comes amid a challenging macro backdrop, with Bitcoin trading in a wide range as well Investors Weighing inflation data, Fed policy expectations, and geopolitical risks. However, Bitcoin remained resilient, rebounding towards $65,000 thanks to weak US inflation data and renewed spot ETF inflows.
Institutional demand also remains a major theme. Major holders accumulated more than 270,000 bitcoins worth approximately $16.7 billion over the course of two weeks despite the significant… European Training Foundation Outflows, a divergence that has historically appeared near major market bottoms.
While the current pattern resembles the setup that preceded Bitcoin’s recovery from the 2022 lows, today’s market is much larger and more institutionally driven.
As a result, a repeat of the 700% rally would likely require much larger capital inflows than in previous cycles.
Bitcoin price analysis
By press time, Cryptocurrency It traded at $64,260, up about 0.3% over the past 24 hours and 0.45% over the week.
The technical outlook for Bitcoin remains slightly bullish in the short term. At current levels, the cryptocurrency is trading above its 50-day simple moving average of $63,596, indicating positive near-term momentum. However, it remains below the 200-day simple moving average at $73,203, suggesting that the broader trend has not yet turned decisively to the upside.
Meanwhile, the 14-day RSI stands at 55.09, a neutral reading that indicates modest buying momentum without indicating overbought conditions.
