Bitcoin Price Analysis

• Bitcoin price is testing $83K, with RSI noting the divergence.
• A close below $84K may lead to another breakout to new highs.
• Bitcoin divergence signals potential bullish reversal.

The price action of Bitcoin recently shows the formation of a possible bullish divergence on its Relative Strength Index (RSI) on a daily scale. Analyst Caleb Franzen (@CalebFranzen) kept a close watch on this scenario and stated that for the pattern to completely play out, Bitcoin must close underneath the very key level of $84,000.

Source: Caleb

As of March 9, 2025, Bitcoin hovered in the $83,000 range, with Franzen being optimistic about the chance of this bullish divergence still being live. An identifiable shift in momentum is apparent on the RSI indicator, which, if confirmed, could potentially mark the beginning of a new bullish phase.

Price Action and RSI Divergence Unfolding

From the analysis of Bitcoin’s price charts, this price movement has been sharply contrary to the RSI action over the last couple of months. Bitcoin had higher highs in late 2024 and early 2025, while the RSI had lower highs in that same time, especially obvious with divergence indications between mid-2024 and March 2025.

The divergence indicates that the price is moving in one direction while the RSI is moving in another, often suggesting a reversal or momentum shift. The green arrow indicates the start of divergence back in late 2024, while the red arrows indicate price peaks where strength was waning, hinting at bearish signals.

Crucial Zone for Determining Next Move for Bitcoin

Currently, Bitcoin is testing the $83,000 mark while the RSI is at 38.91, which has been a significant pivot point in the past. Bitcoin must sustain being under $84,000 for the divergence pattern to remain valid, suggesting that a newfound upward momentum may be on the horizon.

The last time divergence patterns like these appeared in the market was followed by a significant price correction or surge, positioning Bitcoin to possibly break from $83,000 to $85,000. If Bitcoin exceeds $84,000, fresh buying pressure may emerge to achieve new market highs.

Down the Road: What Price Possibilities and Implications Are There for the RSI?

As the market watches closely, it remains uncertain whether Bitcoin will break out of the current range and follow the bullish pattern indicated by the RSI divergence. Should Bitcoin manage to stay below the $84,000 level while the divergence continues to build, we could see prices push through the $85,000 resistance. A break above $85,000 would confirm the bullish divergence and potentially resume the Bitcoin uptrend, especially with the RSI gaining strength.