Bitcoin (BTC) is likely to repeat history and hit a bear market bottom when a classic indicator hits zero, one trader said.
Key points:
- Bitcoin’s classic two-month stochastic RSI signals are valid in this bear market, Max Crypto said.
- The bear market will be over once the indicator returns to zero.
- RSI divergences provided advance notice of BTC price rebounding past $64,000 this month.
Bitcoin’s Stochastic RSI Lower Signal Will “Recur”
In a Message This weekend, Max Crypto publicly announced the end of the 2026 bear market when the Stochastic Relative Strength Index (RSI) hits a new low.
The “Stoch” RSI is a derivative of the RSI, a popular leading indicator, with a greater bias on recent price movements.
“Every time the 2M Stoch RSI encountered a bullish crossover and fell to 0, $BTC would bottom,” Max Crypto wrote in an accompanying commentary.
“This happened in 2014, 2018 and 2022, and it will happen again.”
BTC/USD two-month chart with stochastic RSI data. Source: Cointelegraph/Trading View
The two-month stoch RSI measures 4.81, after falling into its “oversold” zone below 30 in March, TradingView data confirms. Current levels were last seen just over three years ago.
Stoch RSI has already been a target for market participants this year, with daily movements drawing comparisons to the 2022 bear market.
In April, crypto trader Quantum Ascend describe BTC’s price history is “playing out almost perfectly.”
Bear market RSI indices continue to surge
Looking at traditional RSI data, traders continue to look for bullish signals as BTC/USD rises above $60,000.
Related: Will the BTC price bull market start in September? Five things to know about Bitcoin this week
On Sunday, trader and investor BitcoinHyper observed a bullish divergence against the S&P 500.
In early June, the daily RSI fell to just 15, which is one of trader Osemka’s six figures. called later “extremely powerful sales events.”
“There was one instance where the extreme $BTC RSI (1D to 15) failed to break the lows and only managed to sweep it. This was at the end of the accumulation range in 2015,” he said. following Tuesday.
“I mention it now since we also only swept the low following such a powerful drop.”
BTC/USD 1-day chart with RSI data. Source: Osemka/X
Osemka hinted that a deeper RSI retracement could yet emerge, marking a price reversal in line with previous bear markets.
Bitcoin’s return above $64,000 this month came after bullish divergences in the RSI. over several periods.
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