Bitcoin has formed a bullish divergence on the weekly relative strength index, reviving a technical signal last seen near the market’s November 2022 bottom.
BTC traded near $64,700 on Sunday after moving between approximately $63,900 and $64,900 over the previous 24 hours. The rebound has lifted Bitcoin back toward the $65,000 level that repeatedly rejected buyers during July.
A bullish divergence appears when price records a lower low while RSI forms a higher low, signaling that selling momentum is weakening even as the asset remains under pressure.
Crypto analyst Ali Martinez flagged the weekly formation, noting that Bitcoin rallied more than 700% after the previous signal. BTC climbed from around $15,500 following the FTX collapse to an October 2025 record above $126,000.
“The same signal is back,” Martinez wrote, while stopping short of assigning an equivalent price target to the current setup.
Analysts Focus on $65,000 Resistance
The divergence has not yet produced a confirmed trend reversal. Bitcoin remains close to the upper boundary of the short-term range that has contained price between approximately $61,000 and $65,000.
Rekt Capital said Bitcoin is attempting to turn July green after June’s decline, but the recovery has reached the 50-month exponential moving average. BTC must reclaim that indicator to prevent it from becoming new resistance.
Daan Crypto Trades described Bitcoin as “rangebound between this $61K-$65K region,” placing the current price near the upper end of the structure rather than inside a confirmed breakout.
Michaël van de Poppe presented the more aggressive case, arguing that a move above $65,000 could support a broader market breakout. Bitcoin briefly reclaimed $65,000 alongside an Ether rally earlier in the week before losing the level again.
Long-Term Selling Pressure Shows Signs of Easing
Galaxy Digital research head Alex Thorn said the large wave of older Bitcoin returning to circulation may be slowing. Dormant supply movement peaked during 2024 and 2025, while 2026 is on pace to record less than half that volume.
The reduction could remove part of the supply overhang created when long-term holders moved coins acquired at much lower prices. Thorn described the earlier activity as a “great distribution” that is now “mostly over.”
Macro trader Alex Krüger also argued that pressure linked to Bitcoin and Strategy had weakened after driving BTC from approximately $82,000 to $58,000. Strategy’s larger cash reserve has reduced the immediate risk of treasury sales, a development JPMorgan recently described as supportive for Bitcoin.
A sustained break above $65,000 to $66,000 would expose $71,500 to $73,000, while another rejection would return focus to $61,000 and the $59,700 channel support.
