Bitcoin Shows Bullish Reversal Pattern Amid Market Concerns

According to PANews, a bullish reversal pattern has emerged on Bitcoin's daily chart, as market participants anticipate Wednesday's U.S. inflation data to support risk assets. Bitcoin has recently faced significant declines, dropping from $100,000 last month to below $80,000 this week. This downturn is attributed to several factors, including Wall Street's risk-averse sentiment, concerns over U.S. President Donald Trump's tariffs, and fears of a U.S. economic recession. Additionally, the lack of new Bitcoin purchases under Trump's strategic reserve plan has further exacerbated the downward trend. On Tuesday, when prices fell to a multi-month low below $80,000, the Relative Strength Index (RSI) did not confirm the decline. The RSI formed higher lows, contradicting the lower lows on the price chart, confirming a bullish RSI divergence. This suggests that while prices are falling, the momentum of selling pressure is weakening, potentially indicating an upcoming bullish reversal. This pattern appears at a crucial time, as the U.S. February CPI, expected to show progress, is set to be released tonight. The bullish RSI divergence for Bitcoin implies that the market is ready to respond positively to potentially moderate data.