Bitcoin Shows Signs of Local Bottom with Bullish Divergence, Analyst Scott Melker States

September 24, 2025 – Prominent cryptocurrency analyst Scott Melker, widely known as "The Wolf Of All Streets," has indicated that Bitcoin is either at or nearing a local bottom, citing a "highly probable" bullish divergence coupled with an oversold Relative Strength Index (RSI) on the 4-hour chart. Melker shared this technical analysis on social media, emphasizing that while no signal is "100%," the current indicators are reliable.

"$BTC 4-HOUR It is highly probable that Bitcoin has bottomed locally or is in the process. The most reliable signal is present (nothing is 100%) - bullish divergence with oversold RSI," Melker stated in his recent tweet.

Scott Melker, a former music producer and content creator, transitioned into the crypto space in 2016 and has since become a significant voice, offering market analysis and trading insights. His influence was recently highlighted by his appointment as Lead Cryptocurrency Advisor for Red Light Holland, a company adopting a Bitcoin balance sheet strategy. This new role, effective July 14, 2025, involves guiding the company's Bitcoin investments.

A bullish divergence occurs when the price of an asset makes a lower low, but a technical indicator, such as the RSI, makes a higher low, suggesting weakening bearish momentum and a potential trend reversal. An oversold RSI further supports this, indicating that the asset may have been undervalued and is due for an upward correction. These technical patterns are closely watched by traders for potential entry points.

The broader cryptocurrency market has experienced significant volatility throughout 2025, with Bitcoin's price movements often dictating overall market sentiment. Analysts are keenly observing technical indicators for signs of stability and potential recovery, especially after periods of downward pressure. Melker's analysis suggests a potential shift in momentum for the leading cryptocurrency, offering a glimmer of optimism to investors.