Bitcoin Weekly RSI Approaching 2022 Bear Market Low, Liquidity Squeeze Intensifying Bulls vs. Bears Game

BlockBeats News, February 17th, according to Cointelegraph's report, amidst thin holiday trading volume in the global market, Bitcoin briefly surged to $70,000 before quickly falling back, with the price repeatedly fluctuating in a narrow range, squeezing long and short positions in a "liquidation-style" manner.

Data shows that during the holiday period, the depth of the order book decreased, making it easier for large funds to influence short-term trends. In the past 4 hours, the total amount of liquidated positions across the network reached $120 million. Buy and sell walls were repeatedly swept away and quickly rebuilt, adding selling pressure above the price and intensifying short-term downward pressure. Material Indicators described the current trend as a combination of "breakout and washout."

On the technical side, Bitcoin's weekly Relative Strength Index (RSI) dropped to 27.8, the lowest level since June 2022, breaking below the "oversold" threshold of 30. Analysis points out that historically, when the weekly RSI touched this range in 2015 and 2018, it both led to cyclical bottoms; whereas in 2022, after reaching the bottom, it underwent about 5 months of sideways consolidation before finally establishing a macro bottom.

Although the current trend may not entirely replicate historical paths, with the weekly RSI approaching the "cyclical-level low" zone again, it is considered a crucial reference signal for the current market stage.