Bitcoin's RSI Breaks Major Bear Market Pattern, Analyst Sees Bullish Trends

Crypto analyst Sykodelic says that Bitcoin's daily relative strength index (RSI) has reached above 85, a level never seen during a bear market. This reading suggests that the current rally may be more than just a temporary bounce.

Sykodelic pointed to Bitcoin's 10-year price history and found that every time the daily RSI moved above 85, it marked the beginning of a major uptrend or was near its top. He acknowledged that this could be an exception, but expressed doubt about it.

The analyst described the current price action as 'vertical accumulation,' similar to November 2024 when Bitcoin's daily RSI also reached 85. The pattern involves a move into overbought territory, followed by a rally with few entries for traders, and then a higher continuation while everyone expects the price to drop.

Binance's open interest in BTC futures has also increased, reaching about $9.54 billion, its highest level in three months. This could indicate growing confidence in the bullish trend but also raises liquidation risk if the price reverses.