Bitcoin’s Potential Reversal

A crypto strategist known for accurately predicting Bitcoin’s pre-halving correction last year suggests that BTC may soon end its correction if a certain technical setup unfolds.

Pseudonymous analyst Rekt Capital has shared insights with his 542,500 followers on the social media platform X, indicating that Bitcoin’s relative strength index (RSI) is showing a bullish divergence on the daily chart.

Bullish Divergence Signal

A bullish divergence on the RSI is typically seen as a reversal signal, suggesting that buying momentum is rising even if the asset’s price is declining or moving sideways.

> “Promising early-stage signs of a Bullish Divergence developing.
> Reclaiming the previous lows of $84,000 could set the price up to further build out this Bull Div.”
> — Source: Rekt Capital/X

Rekt points out that BTC is signaling a bullish reversal while also indicating signs of seller exhaustion.

Seller Exhaustion

> “The seller volume has continued to decline over the past few days.
> It has dropped to a level where sellers are now producing below-average volume whenever they try to take control of the market, creating an opportunity for buyers to step in more.”
> — Source: Rekt Capital/X

Rekt highlights that Bitcoin’s resistance around $84,000 seems close to breaking after being tested multiple times recently.

> “The signs for a weakening resistance were evident.
> The price now needs to confirm that this resistance is weak enough to become support.
> Bitcoin is one Daily Close above this level from moving further to the upside.”
> — Source: Rekt Capital/X

As of the time of writing, Bitcoin is trading at $83,150.