CryptoQuant: Bitcoin RSI Approaching Bear Market Boundary, Falling Below 4-Year Moving Average Usually Signals Potential Entry into a Deeper Bear Market Phase

PANews, December 25 — CryptoQuant analyst Axel Adler Jr. released the latest analysis, stating that bitcoin has dropped 19.7% (about $21,500) over the past three months and has fallen 10.5% (about $10,400) year-to-date, showing a significant correction trend. Although the price has stabilized in the short term (up 1.5% for the week, down 0.5% for the month), the monthly RSI indicator shows weakening market momentum, with the current value at 56.5, falling below the 12-month moving average (67.3) for the first time and only 2 points away from the 4-year moving average (58.7).

According to historical data, when the RSI falls below the 4-year moving average, it usually signals that the market may be entering a deeper bear market phase. Adler pointed out that the next 1-2 months are very critical. If the RSI can remain between 55-58, bitcoin may have a chance to recover; if it continues to fall below 55, it may enter a deeper downward phase. Investors need to closely monitor the subsequent performance of the RSI to determine whether the market is in a correction cycle or turning to a deeper downward trend.