As Bitcoin (BTC) circles around the $83,000 mark, traders are eyeing a critical resistance level near $84K. The market may be experiencing a classic bullish divergence, which could signal potential upward momentum, particularly after a week marked by macroeconomic uncertainty.
Data suggests that Bitcoin gained up to 5% during the trading day but faced a lack of momentum as investors remain cautious of geopolitical developments, especially concerning US trade policies. According to popular trader and analyst Rekt Capital, the relative strength index (RSI) metrics are hinting at an increasing chance of a bullish divergence. This divergence indicates a potential phase where the RSI is forming higher lows while the price is setting lower lows, suggesting a reduction in seller dominance.
“Promising early-stage signs of a Bullish Divergence developing,” Rekt stated. “Reclaiming the previous lows of $84k could set price up to further build out this Bull Div.” This sentiment reflects the growing optimism among traders that a breakout above the $84K resistance could pave the way for further gains.
A crucial horizontal resistance level is under pressure from bulls, with signs that each rejection from this resistance could be weakening. Rekt emphasized that, “If this weakening in the resistance persists, it should open the opportunity for BTC to finally close above this $84k resistance, reclaim it as support, and establish an upward trend.” This outlook aligns with the indications in both the BTC/USD chart and other technical analyses.
Keith Alan, the co-founder of Material Indicators, has also highlighted significant moving averages to watch. Currently, the 21-day SMA stands at $83,740, while the 200-day SMA is at $86,800. Alan pointed out that BTC must maintain a sustained close above the 200-Day MA for this potential bullish move to be validated. He noted the importance of observing for an R/S Flip at the 21-Day MA to confirm a rally.
In another market development, gold has been making headlines, with prices soaring above $3,000 per ounce as investors flock to safer assets amid turbulent macroeconomic conditions. The surge in gold prices and the recent downturn of the S&;P 500, which has dropped 10% from its recent all-time highs, have put Bitcoin’s performance under scrutiny. Notably, Bitcoin has broken a long-term trendline against gold, showcasing its relative underperformance during this time.
As market dynamics shift, traders and investors are encouraged to stay alert and conduct thorough research to navigate this volatile environment. The landscape for Bitcoin remains complex, with the potential for significant movement as it seeks to establish stronger resistance levels or face further challenges.
This article serves as an analytical overview of Bitcoin’s recent price behaviors and the macroeconomic factors influencing market trends. Remember, every investment carries inherent risks, and it is essential to stay informed and prepared.
