Bitcoin Shows Bullish RSI Divergence Ahead of U.S. CPI Release
A bullish reversal pattern has emerged on Bitcoin's daily price chart as investors await U.S. inflation data.
- BTC dropped from $100,000 to under $80,000 due to Wall Street risk aversion and concerns over tariffs and recession fears.
- The lack of new BTC purchases under Trump's strategic reserve plan added downward pressure.
- Despite falling prices, the relative strength index (RSI) showed a higher low, indicating bullish RSI divergence.
- This suggests that while prices decline, selling momentum is weakening, signaling a potential trend reversal.
The U.S. consumer price index (CPI) for February is set to be released at 12:30 UTC, with expectations of a 0.3% increase month-on-month. This could lead to an annualized reading of 2.9% for headline CPI and 3.2% for core CPI, both down 0.1 percentage point from January.
Market participants are closely watching the CPI data for its impact on rate expectations, as analysts predict four Federal Reserve cuts this year compared to one in January.