Bitcoin's weekly RSI mirrors the 2022 bear market as BTC engages in liquidity games. On Monday, Bitcoin's price saw a volatile swing, with both long and short positions being taken out due to low-volume trading. This activity highlighted the ongoing 'breakouts and shakeouts' within a narrow price range, echoing the market dynamics of the 2022 bear cycle. The focus now shifts to the weekly RSI, which is approaching 'once per cycle lows' in oversold territory, similar to 2015 and 2018. However, it's important to note that this doesn't guarantee a repeat of the past, and close monitoring is advised to identify any deviations from the pattern. The liquidity squeeze, exacerbated by Wall Street's closure, led to multiple 'squeezes' affecting both long and short traders, with $120 million in crypto liquidations recorded in the four hours leading up to this report. Traders like Daan Crypto Trades and CW observed increased volatility and buying pressure, respectively, with the latter noting sustained net buying across most exchanges except OKX.
