The Bullish RSI Divergence That Could Save Bitcoin (Again)

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🚀🔥👀 The Bullish RSI Divergence That Could Save Bitcoin (Again)

The Bullish RSI Divergence That Could Save Bitcoin (Again)

What to know:

  • A most intriguing reversal pattern has emerged on bitcoin’s daily price chart, hinting at a potential shift in market momentum, like a gentle breeze on a summer’s day.
  • Tonight’s CPI print could set the stage for a most unexpected turn of events, with markets currently predicting four Federal Reserve cuts this year, a development that would be nothing short of astonishing.

As one gazes upon the daily price chart of bitcoin (BTC), a pattern of great significance has emerged, like a phoenix from the ashes. A technical analysis pattern, hinting at a bull reversal, has appeared, suggesting that the market momentum may be about to shift, like the tides of the ocean.

BTC, that most enigmatic of assets, has recently suffered a most ignominious fall, plummeting from $100,000 last month to under $80,000 this week, due to a combination of factors, including risk aversion on Wall Street, concerns about Trump’s tariffs, and U.S. recession fears. The disappointment over the lack of fresh BTC purchases under Trump’s strategic reserve plan added to the downward momentum, like a stone cast into a still pond.

However, as prices fell to multi-month lows below $80,000 on Tuesday, the relative strength index (RSI)—that most trusted of momentum oscillators—did not confirm this decline. The indicator produced a higher low, contradicting the lower low on the price chart, confirming what is known as the bullish RSI divergence. Ah, the irony!

It indicates that while the price is going down, the momentum behind the selling is weakening, potentially signaling an upcoming reversal to a bullish trend, like a ship changing course in the midst of a stormy sea.

The pattern couldn’t have come at a more opportune time than today, as the U.S. consumer price index for February, scheduled for release at 12:30 UTC, is expected to show progress, like a sunrise breaking through the clouds.

According to CNBC, the data is expected to show that the headline CPI and the core figure, which excludes food and energy, increased by 0.3% month-on-month in February. That implies an annualized reading of 2.9% for the headline CPI and 3.2% for the core, both 0.1 percentage point lower than in January.

“Tonight’s CPI print could set the tone for rate expectations, as markets now price in four Fed cuts this year, up from just one in January. Will inflation data validate this shift or bring fresh turbulence?,” Singapore-based crypto trading firm QCP Capital said in a Telegram broadcast, like a wise sage offering words of wisdom.

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2025-03-12 14:13