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▲ Bitcoin (BTC) Investment ©Godasol
Analysis suggests that Bitcoin is showing signs of having passed the bottom instead of further sharp declines, and the market's downside risk is rapidly decreasing.
According to cryptocurrency specialized media Bitcoinist on April 18 (local time), cryptocurrency analyst Sykodelic, based on long-term technical indicators, diagnosed that the possibility of Bitcoin recording a new low again has become very low.
The core of the analysis is the weekly Relative Strength Index (RSI). Historically, Bitcoin's RSI has fallen below 30 only three times, with the most recent being in the first quarter of 2026. Subsequently, the RSI recovered to the normal range and broke above the downtrend line, which is explained as being identical to the pattern that served as a strong bullish reversal signal in past cycles.
In addition, bottom signals coincided simultaneously. The analyst assessed that approximately 12 key bottom indicators were active simultaneously. In fact, Bitcoin holdings on exchanges decreased to a 7-year low, and whale wallets accumulated over $2 billion, reaching their highest level in two months. Institutional fund flows are also clear. In April, a total of $954.05 million flowed into Bitcoin spot ETFs, and $1.32 billion also flowed in during March, indicating continued fund inflows.
The price structure is also showing signs of change. Bitcoin broke above the downtrend line at over $70,000, a movement similar to bullish reversal periods in 2022, 2023, and early 2025. This structural change is interpreted as an environment that increases the possibility of a bullish reversal rather than a continued decline. However, the analyst added that the weekly closing trend is an important variable, and a cautious approach is needed to confirm a complete bullish reversal.
Currently, Bitcoin is trading at approximately $77,245, up 3.4% over 24 hours. While the market is still divided on its direction, the assessment that the possibility of a further sharp decline is decreasing is gaining traction as key indicators simultaneously point to a bottom signal.
*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*
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