Bitcoin's ‘more reliable’ RSI variant hits bear market bottom zone at $87K
Bitcoin's Velocity RSI indicator has reached levels only seen at past bear market bottoms, suggesting a major cyclical reset near $87,000.Summary
Analysis suggests Bitcoin is signaling a bear market bottom near $87,000, based on its Velocity Relative Strength Index (RSI) hitting rare single-digit readings on the 3-day chart. Analyst On-Chain Mind noted that this indicator, which accounts for recent momentum changes, has reached levels only seen at the bottoms of the last three bear markets (2018 and mid-2022), suggesting a potential "major cyclical reset." However, other metrics show divergence; Bitcoin's long/short ratio has remained unusually elevated for a long period while the price continued to drop, a behavior never seen before. This unusual activity might incentivize large players to liquidate overly eager bulls, potentially pushing the price lower despite the positive Velocity RSI signal.
(Source：Cointelegraph)