A view has emerged that a bottom in Bitcoin's bear market could form when the two-month stochastic RSI reaches zero.
On July 14, Cointelegraph reported that some traders are watching the possibility that RSI moves similar to past bear markets could repeat in 2026.
The focus is the two-month stochastic RSI. It is a derivative indicator based on the standard RSI and designed to react more sensitively to recent price moves. Trader Max Crypto linked the end of the 2026 bear market to a new low in this indicator in a post on X, formerly Twitter. "Every time the two-month stochastic RSI made a bullish cross and fell to 0, Bitcoin hit bottom," he said.
On TradingView, the two-month stochastic RSI is currently 4.81. The indicator fell into oversold territory below 30 in March, and a similar level was last seen more than three years ago. Market participants are already treating it as a key point to watch this year. The daily trend was previously compared with the 2022 bear market.
Other traders are also looking at RSI as a clue to identifying bottoms. In April, Quantum Ascend assessed that Bitcoin's price action was unfolding almost perfectly in line with past patterns. The view is that RSI could give a rebound signal first even as Bitcoin fails to establish a clear direction above $60,000.
Daily RSI is also drawing attention. Trader and investor BitcoinHyper pointed on July 13 to a bullish divergence versus the S&P 500. In early June, daily RSI fell to 15, an episode that trader Osemka later called one of the "very strong sell events."
Bitcoin has also reclaimed $64,000 this month. Behind that was bullish RSI divergence seen across multiple time-frame charts. The market appears to be focusing less on a short-term price rebound itself and more on whether long-term stochastic RSI and short-term RSI can simultaneously generate signals similar to past bottom zones.
Ultimately, the point to watch is whether the indicators repeat rather than the price itself. Whether the two-month stochastic RSI actually falls to 0 while making a bullish cross, and whether the daily RSI completes a reversal pattern after further declines, have become central to discussion of a 2026 Bitcoin bear-market bottom, the outlet reported.