Bitcoin’s Wacky Price Journey: Will It Soar or Plummet? Find Out Now!

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Ah, the US Consumer Price Index data is set to grace us with its presence later on Friday, like an unexpected guest at a dinner party who insists on discussing politics. The forecasts suggest it will remain steady, which is comforting, much like a warm cup of tea on a rainy day. If it does hold steady, Bitcoin and its risk asset pals might just avoid any dramatic fits of financial angst. But beware, dear reader! Should the figures wobble into the realm of the unexpectedly negative, we could witness Bitcoin leading the stock market downward in a tragic, yet oddly entertaining, dance.

$BTC price about to break out of falling wedge

Now, let’s take a gander at the short-term shenanigans of $BTC. Our dear cryptocurrency finds itself trapped in a small falling wedge, much like a particularly stubborn cat cornered by a vacuum cleaner. As it reaches the pointy end of this metaphorical wedge, it must decide which way to leap: up towards the stars or down into the abyss.

Given that this little pattern is generally considered bullish – yes, it’s a term that evokes optimism like a sunny day in England – we might expect the breakout to be upward. However, with the US CPI data release scheduled for 8:30 a.m. ET today, prepare for some volatility that could rival a roller coaster designed by a mad scientist.

A favorable data release might catapult those bulls back above the illustrious $69,000 resistance level, while a less-than-stellar report could see the price tumble back down to the $60,000 support, like a bungee jumper who’s forgotten his cord.

RSI matches Covid crash low

Turning our gaze to the daily chart, we see $BTC holding on beneath the $69,000 support level, much like a toddler clinging to their favorite stuffed animal during a thunderstorm. Yet, fear not! That cheeky falling wedge pattern is there, ready to lend a helping hand, or perhaps a paw.

And speaking of indicators, the Relative Strength Index (RSI) is showing signs that we might have found a bottom. This indicator has plummeted so far it nearly touches the 15:00 level, a noteworthy drop reminiscent of the lowest points during the Covid crash. It’s a dramatic fall, only eclipsed by the lows of the 2018 bear market, which is basically the Wall Street equivalent of a Shakespearean tragedy.

Has bearish divergence fully played out?

Now, taking a stroll through the weekly chart reveals the bull market trendline-our last bastion of hope amidst a sea of failing trendlines. This one is crucial, akin to finding the last slice of pizza at a party. And the 200-week SMA is traipsing along this trendline, offering some support like a loyal friend who promises to help you move your couch.

However, at the bottom of the chart, the RSI has once again taken a dive, almost matching the bear market low from 2022. One has to wonder, how much further can it plunge? Will it discover a new level of awfulness?

Amidst all this financial drama, one thing is clear: the bearish divergence that kicked off in early 2024 is still lurking around, possibly plotting its next move. With a 52% drop from the all-time high, we must ponder whether this divergence has already delivered its bearish payload, or if there’s more chaos awaiting us just around the corner.

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2026-02-13 14:03