Bitcoin price prediction based on RSI: Is BTC poised for a new rally?

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Bitcoin price prediction based on RSI

RSI flashed a bullish signal

Two crypto traders have noticed an unusual pattern on Bitcoin’s weekly chart. This is a situation where the BTC price drops below previous levels, while RSI (Relative Strength Index), on the contrary, shows higher lows. This means that Bitcoin’s price is still falling, but the decline may no longer be as strong as before.

Merlijn The Trader expects Bitcoin could still fall into the $50,000–$55,000 range in the short term. At the same time, he believes BTC is forming a macro bottom structure over a longer timeframe. As his main argument, the trader pointed to the weekly bullish RSI divergence and compared it with the signal that appeared before the 2022 bottom near $15,000.

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Crypto Rover also said that the weekly bullish divergence for BTC has already been confirmed. According to him, Bitcoin’s price is showing lower lows, while RSI is showing higher lows. The trader noted that the last time a similar signal appeared, BTC later rose by more than 700%, but he also warned that this does not mean the exact bottom has already been formed.

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Why traders watch RSI

To understand this signal, it is important to know what RSI is. It is an indicator that helps measure how strongly and quickly an asset’s price is changing. It moves from 0 to 100: readings above 70 usually point to an overheated market, while readings below 30 usually point to a deep decline.

In Bitcoin’s case, the key point now is not the 70 and 30 levels themselves, but the difference between the price and RSI. BTC’s price may continue to fall, but if RSI is already starting to rise, it shows that the decline is becoming weaker. This is exactly the pattern traders are now discussing.

At the same time, RSI does not provide an exact forecast. During a strong rise or fall, it can remain in extreme zones for a long time and produce early signals. That is why traders usually look not only at RSI, but also at the price, trading volumes and the nearest resistance levels.

BlackRock keeps a bullish view on BTC

Interest in Bitcoin is being supported not only by traders who follow charts. Major Wall Street players also continue to talk about BTC’s long-term potential.

BlackRock CIO Rick Rieder said that, in his view, Bitcoin will ultimately move considerably higher. He did not name a specific price and did not link this forecast to short-term market movements.

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This comment is important for the broader backdrop around BTC. BlackRock manages the largest spot Bitcoin ETF in the U.S., so statements from the company’s representatives remain notable for the market.

What this means for Bitcoin’s price

Right now, RSI does not show that Bitcoin has definitely reversed upward. It points to something else: BTC’s decline may be gradually losing strength, and the market may be approaching a point where buyers start defending the price more actively again.

For the bullish scenario, Bitcoin needs not only to show an RSI signal but also to confirm it with price action. If BTC manages to hold above key support zones and starts recovering, this signal will look stronger. In that case, RSI could be viewed as an early sign that the market is moving into a new growth phase.

For now, the forecast remains cautious. Bitcoin could still go through another decline or retest weak levels. But the combination of the weekly chart signal and long-term interest from major players makes the BTC recovery scenario more visible.

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