Analyst: Bitcoin’s two-month stochastic RSI returning to zero may indicate the bottom of this bear market

BlockBeats reported on July 14 that trader Max Crypto stated that the two-month Stochastic RSI for Bitcoin has historically confirmed market bottoms after a bullish crossover followed by a drop to 0 during the bear markets of 2014, 2018, and 2022. He believes this pattern "will reappear in 2026".

According to TradingView data, Bitcoin’s two-month Stochastic RSI is currently at 4.81. It previously entered the oversold zone (below 30) in March this year, and the current level is the lowest in over three years.

In addition, several analysts continue to focus on bullish signals released by the traditional RSI indicator. Trader BitcoinHyper pointed out that Bitcoin’s daily RSI has formed a bullish divergence with the S&P 500 Index. Trader Osemka stated that Bitcoin’s daily RSI briefly fell to 15 in early June, which is an extremely rare oversold level in history and similar to the performance near the bottoms of previous bear markets. However, he does not rule out the possibility of a deeper retracement before the final bottom is established.