Bitcoin (BTC) headed toward $85,000 as the March 23 weekly close drew in, indicating that an important new trend reversal was due to appear. The total digital currency recovered handsomely. It continued to rally as the overall broader crypto market began increasing, taking major altcoins with it. Technical analysts have spotted a major bullish divergence on weekly timeframes. If true, this would mean that the most recent episode of market volatility is starting to subside.
Bullish Divergence Signals Potential Trend Reversal
This was enough for stockmoney lizard to tweet that Bitcoin is on the brink of a weekly bullish divergence, the first of its kind since September. Given that this observation was based on weekly timeframes, it implied a significant shift in momentum.
BTC can make weekly bullish divergence for the first time since September tonight. - Stockmoney Lizards
Nonetheless, Stockmoney Lizards further noted that any upside resumption would likely require time to fully develop. While the delay was disappointing, the signal was a positive sign for investors.
BTC/USD was looking set to print an important bullish Relative Strength Index (RSI) divergence on weekly timeframes. This technical indicator often signals a potential reversal in price direction, adding further weight to the bullish outlook.
Technical Indicators Show Encouraging Signs
Rekt Capital tweeted some positive breakout indicators on daily timeframes for Bitcoin’s relative strength index (RSI). The analysis pointed to a recovery so persuasive that it strengthened optimism about Bitcoin’s short-term path.
The Daily RSI is showcasing early signs of retesting the Downtrend dating back to November 2024 as new support. - Rekt Capital
Matthew Hyland thought that price levels really meant something for Bitcoin now at this price point. The enthusiasm of buyers indicated a bottoming out might be a possibility.
Market Sentiment and Future Outlook
Bitcoin (BTC) was up 1.5% on the day, climbing higher as a sign of a general crypto market surge. Data from Cointelegraph Markets Pro and TradingView show BTC/USD making solid progress over the weekend. Bitcoin (BTC) set a new local bottom at $76,000, a floor price that the asset had already bottomed out at several weeks prior. Daan Crypto Trades tweeted the net closing position of CME Group’s Bitcoin futures as an indicator of hope for future bullish market action.
I think this next week will be telling where the market wants to head for the next higher timeframe move. - Daan Crypto Trades
