A technical analysis pattern suggesting Bull Reversal is featured on Bitcoin (BTC) daily price charts as market participants look to US inflation data on Wednesday and put it under risk assets.
BTC recently fell from $100,000 last month to under $80,000 this week due to several factors, including risk aversion on Wall Street, Trump’s tariffs and fears of a US recession. The disappointment at the lack of fresh BTC purchases based on Trump’s strategic readiness plan added to the downward momentum.
However, the relative strength index (RSI) (widely tracked by momentum oscillators) could not confirm this decline as prices fell below $80,000 on Tuesday. This indicator produced a higher low that contradicts the low lows on the price list, confirming what is known as bullish RSI divergence.
While prices are falling, the momentum behind sales has weakened, indicating a potential indication of future reversals of bullish trends.
Daily Bitcoin chart using RSI. (tradingView/coindesk)
This pattern didn’t come at a more interesting time than today, as the US consumer price index for February, scheduled to be released at 12:30 UTC, is expected to show progress. The bullish divergence of BTC in RSI means that the stage is set in a positive response to potential soft readings.
According to CNBC, the data is expected to show that the headline CPI and core figures exclude food and energy increased by 0.3% a month in February. This means an annual reading of 2.9% in Headline CPI and 3.2% in Core, both of which are 0.1 percentage points lower than in January.
“Tonight’s CPI print could set the tone of rate expectations as prices rise with four Fed cuts starting from just one of the January this year. Will inflation data validate this shift or bring about fresh turbulence?”
