Bitcoin price action is exhibiting subtle technical signals suggesting that intense selling pressure may be easing, by Real Vision crypto market analyst Jamie Coutts. While the broader market structure maintains a bearish trajectory, a critical indicator on the weekly chart reveals that downward momentum is losing velocity. Coutts identified the emergence of a bullish divergence on Bitcoin's weekly Relative Strength Index (RSI), a momentum oscillator that measures the speed and change of price movements. This specific technical formation occurs when the asset price establishes a lower low while the RSI simultaneously forms a higher low, creating a disconnect between price action and underlying momentum. Data compiled by Woofun AI shows that last week Bitcoin retested its February low, yet the RSI held at a comparatively elevated level, marking a distinct deviation from previous price declines.

This current configuration stands in direct contrast to the bearish divergence observed last September, which historically preceded further significant price declines. Coutts described the present pattern as an early warning that selling momentum is decelerating, even if the asset has not yet established a definitive bottom. The analyst drew parallels to similar divergences that materialized during previous bear markets in 2015, 2019, and 2022, noting that each instance eventually preceded major trend reversals. Despite the encouraging nature of the RSI signal, Coutts emphasized that the overall trend for Bitcoin remains bearish across all major timeframes. He cautioned that further price declines are still possible and that the bear market cycle may not be concluded, as the divergence alone does not confirm a market bottom.

The strategic implications of this technical development vary significantly based on investor time horizons. For long-term investors, the current environment may present a viable accumulation opportunity. Coutts suggested that participants with a multi-year horizon are likely to begin building positions at these levels, betting on a future recovery driven by the waning sell pressure. In contrast, short-term traders are expected to remain on the sidelines, waiting for a confirmed trend reversal before committing capital. Such a confirmation would typically require a break above a key resistance level or a sustained move higher to validate the shift in market dynamics. Woofun AI notes that the distinction between accumulation strategies and speculative trading is critical in this transitional phase where technical signals conflict with prevailing trends.

The appearance of a bullish divergence on Bitcoin's weekly RSI represents a notable technical development, but it does not signal an immediate end to the bear market. The pattern indicates that selling pressure is waning, a condition that has historically preceded major bottoms in the asset's price history.

However, until the broader trend shifts decisively, caution remains warranted for all market participants. The coming weeks will be critical in determining whether this divergence leads to a genuine reversal or simply a temporary pause in the downtrend. Woofun AI analysis suggests that while the deceleration of selling momentum is a positive sign, the path to a sustained recovery will likely require additional confirmation from volume and price action to overcome the entrenched bearish sentiment.