Bitcoin's Weekly RSI Bullish Divergence Revives 2022 Signals Amid Daily Overbought Warning
Bitcoin's recent price surge has sent mixed signals to traders and analysts, as technical momentum indicators show both bullish and bearish trends. The weekly Relative Strength Index (RSI) is flashing a pattern that previously preceded major trend reversals, while the daily RSI is near its most 'overbought' levels since November 2024.
The key question for market participants is whether last week's sharp rebound can mature into a sustained uptrend or fade into another cycle of volatility. According to TradingView-based analysis, Bitcoin's weekly RSI has climbed to 58.3, its highest reading since BTC/USD's all-time high of $126,200 in October 2025.
Weekly RSI is considered a crucial indicator for assessing broader trend structure and longer-cycle shifts. Analysts argue that the current bullish divergence on this timeframe suggests momentum may be rotating upward rather than simply bouncing. 'Weekly is the timeframe that matters here, that's where you read the secular trend and the cycle inflection points,' said Jamie Coutts, chief crypto analyst at Real Vision.
However, daily RSI being near its most extreme level since November 2024 can increase the probability of sharp intraday or multi-day pullbacks even within an overall bullish transition. 'An extreme move like this usually signals the start of something new,' said Jonatan Randin, senior market analyst at PrimeXBT.