Bitcoin's Bullish Divergence Sparks Recovery Hopes, Traders Disagree on Next Move

Bitcoin ($BTC) is showing signs of a potential recovery as it continues to battle for $60,000. The Relative Strength Index (RSI) is signaling a bullish divergence, which has some analysts calling for a bottom in prices similar to the end of the 2022 bear market.

Data from TradingView shows that volatility has cooled after Bitcoin returned above the $60,000 mark. A series of higher swing lows on hourly time frames combined with encouraging readings from the RSI indicator have sparked hopes of a price reversal.

Pseudonymous trader Rod pointed out a chart comparing the current bear market with 2022, where a weekly RSI bullish divergence kicked in while $BTC/USD set its bear-market low of $15,600. Four-hour RSI fell to just 11.4 at the start of June, marking one of its lowest levels on record.

Crypto analyst Lukasz Wydra added daily time frames to the mix of RSI bull signals, describing them as an 'encouraging sign'. However, not all traders agree, with some predicting further downside pressure and new price lows.