Since March 2024, Bitcoin's Relative Strength Index (RSI) has been on a consistent downtrend, raising concerns about the sustainability of its current price levels.
Decline of RSI and Its Significance
Since early March 2024, Bitcoin's weekly RSI has been forming 'lower highs', a classic sign of weakening momentum. Despite several rallies during this time, the RSI has not been able to break above previous peaks, raising concerns among technical analysts.
Potential Market Consequences
A pattern of lower highs in RSI while the price consolidates or rises can indicate bearish divergence, suggesting that the asset might be losing strength even as prices remain stable. Historically, such patterns have preceded pullbacks or extended sideways movement in Bitcoin.
What to Expect from Bitcoin in the Future?
As we move through the second half of 2025, traders are closely watching whether Bitcoin will break this RSI trend. If the current pattern continues, Bitcoin may face stronger resistance in the coming weeks. However, a sudden spike in momentum, perhaps triggered by macro events, could lead to a sharp reversal.
The Bitcoin RSI trend is a key indicator that traders should monitor in the current market conditions.
