Bitcoin weekly RSI approaches 2022 bear market lows, liquidity squeeze intensifies long-short battle

BlockBeats News, February 17, according to Cointelegraph, amid light trading during the global holiday period, Bitcoin briefly surged to $70,000 before quickly pulling back, with the price repeatedly fluctuating within a narrow range, causing both long and short positions to be "liquidated" in a squeeze.

Data shows that order book depth decreased during the holiday, making it easier for large funds to influence short-term price movements. In the past 4 hours, total liquidations across the network reached $120 million. The order book saw multiple buy and sell walls swept away and quickly rebuilt, while increased selling pressure above the price intensified short-term downward pressure. Material Indicators described the current trend as "a mix of breakout and shakeout."

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

Although the current trend may not fully replicate historical patterns, the weekly RSI once again approaching the "cycle-level low" range is seen as an important reference signal for the current market phase.