Bitcoin price approaches bottom according to rare Dorito indicator

The Bitcoin price stands at $61.800 and shows a recovery of 2.4% over the past 24 hours. Analyst CryptoJelleNL points to a rare technical indicator that historically coincides with market bottoms: the so-called dorito indicator. Combined with an emerging bullish divergence on the weekly RSI, this creates an interesting picture for buyers considering entry.

Bitcoin is available at OKX and Bybit.

What is the dorito indicator?

The dorito indicator is a pattern that rarely appears on the Bitcoin chart. When the signal is active, the price has historically been close to a bottom or has already reached one. CryptoJelleNL shares the chart and states that the indicator is now active on the higher timeframes.

According to the analyst, no one should be ashamed of adding to positions at this level. The combination of the dorito indicator with an emerging bullish divergence on the weekly RSI makes the current price zone attractive in his view. A bullish divergence occurs when the price forms new lows while the RSI shows higher lows, indicating decreasing selling pressure.

Signal also active on the 3-day timeframe

In addition to the higher timeframes, the signal also appears on the 3-day timeframe. On this shorter timeframe, the indicator is particularly useful for spotting local bottoms, but its accuracy remains impressive according to CryptoJelleNL. The question, therefore, is whether Bitcoin is now ready for a bounce.

The charts show that similar signals in the past coincided with major turning points, both in 2023 and in earlier market cycles. Whether the current situation will unfold in the same way is of course uncertain, but the number of technical signals simultaneously pointing in the same direction makes the situation noteworthy. Traders and long-term investors will therefore be keeping a close eye on the price in the coming days.