Since March 2024, Bitcoin’s weekly Relative Strength Index (RSI) has consistently trended downwards, signaling a weakening momentum in the market. Lower highs in the RSI are often seen as a bearish signal, particularly when accompanied by price consolidation or slight upward movement. This pattern has persisted for over a year, raising concerns among technical analysts who observe a potential decline rather than sustained growth.
Despite recent rallies, Bitcoin’s RSI hasn’t been able to break through past peaks, contributing to the growing caution among traders. The RSI is a popular indicator used in both crypto and traditional markets, measuring price strength on a scale of 0 to 100. A downtrend in RSI even with flat or slightly rising asset prices often signals that buying pressure might be waning.
The bearish divergence pattern occurs when RSI trends downwards while the asset’s price remains relatively stable. This can suggest the asset may be losing momentum even as prices hold steady, a potential warning sign for bullish traders. However, historical examples show this pattern can also precede pullbacks or sideways movements in Bitcoin.
Traders closely monitor the trend of Bitcoin’s RSI as it has been making lower highs over the past year. If the RSI breaks above recent peaks, it could signal a renewed bullish momentum and potentially trigger a further surge in BTC prices.
As we progress through 2025, the upcoming weeks will be crucial for Bitcoin. The market awaits to see if the current trend of declining RSI continues or if it might initiate a sudden shift in momentum, possibly triggered by external events such as macroeconomic developments or ETF news.
Until then, tracking the RSI trend for Bitcoin remains critical for all traders.