Bitcoin's weekly RSI is approaching the lows of the 2022 bear market, and the liquidity crunch is intensifying the battle between bulls and bears.

According to Cointelegraph, amid thin trading in global markets due to the holiday, Bitcoin surged to $70,000 before quickly retreating, fluctuating within a narrow range as both long and short positions were squeezed by "liquidation." Data shows that order book depth decreased during the holiday, making large sums of money more likely to influence short-term price movements; $120 million in liquidations occurred across the network in the past four hours. The order book repeatedly saw buy and sell walls being swept away and quickly rebuilt, with new selling pressure above the price exacerbating short-term downward pressure. Data analytics firm Material Indicators described the current trend as "a mix of breakout and consolidation." Technically, Bitcoin's weekly Relative Strength Index (RSI) fell to 27.8, its lowest level since June 2022, breaking below the "oversold" threshold of 30. Analysis indicates that historically, in 2015 and 2018, the weekly RSI formed a cyclical bottom after touching this range; while in 2022, it consolidated for about five months after bottoming out before finally establishing a macro bottom. Although the current market trend may not completely replicate historical paths, the weekly RSI's approach to the "cyclical low" range is considered an important reference signal for the current market phase.