Bitcoin’s RSI Signals Hint at Bullish Breakout
- A Relative Strength Index (RSI) breakout is underway.
- Bitcoin’s RSI has broken a 4-month downtrend on the weekly chart, showing strong signs of bullish divergence across multiple timeframes.
- Traders interpret this as a classic early bull market signal, suggesting further upside potential.
- The pattern mirrors past cycles, including Bitcoin’s 2020 rally, where similar RSI setups preceded major price surges.
“The weekly RSI is breaking above a trendline that has held since November 2024,” notes technical analyst Keith Alan. “This could be the beginning of a significant uptrend.”
First 6-Month RSI Breakout Since 2020 Precedes Possible $85K Move
- Bitcoin is poised for its first 6-month RSI breakout since the 2020 bull run.
- Historical data suggests such breakouts lead to triple-digit percentage gains, with analysts targeting $85,000 if momentum sustains.
- BTC/USD is consolidating above $67,000, building strength for the next move.
March 28: Key Macro Trigger — US PCE Index Report
- The US Personal Consumption Expenditures (PCE) index release on March 28 will be critical for market direction.
As the Fed’s preferred inflation gauge, the PCE report will shape interest rate expectations.
- Cooling inflation: Could boost Bitcoin and risk assets.
- Hot inflation: May trigger short-term downward pressure.
Analysts highlight that dovish Fed signals could accelerate BTC’s next major rally.
ETF Inflows and Institutional Demand Support Price
- Bitcoin spot ETFs continue recording strong inflows, led by BlackRock’s iShares Bitcoin Trust (IBIT).
- Institutional demand is mitigating sell-side pressure, even near all-time highs.
FAQs
Q: What does Bitcoin’s RSI breakout indicate?
A: It suggests weakening selling pressure and potential bullish momentum, often preceding major price rallies.
Q: How significant is the PCE report for crypto?
A: It’s a top-tier macroeconomic indicator; softer inflation data typically favors risk-on assets like Bitcoin.
Q: Are ETFs driving Bitcoin’s price?
A: Yes. Sustained ETF inflows reflect growing institutional adoption, reducing volatility and supporting prices.
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Key Takeaways
- Technical indicators (RSI breakout) and macro events (PCE report) are aligning for potential upside.
- Institutional demand via ETFs is a persistent bullish catalyst.
- Strategic entry points matter—volatility around key data releases offers opportunities.