Bitcoin has broken its weekly RSI trendline, signalling a potential bullish reversal after struggling with global tariff pressures. Analysts suggest that BTC could reach up to $140,000, but bearish patterns are also forming that could lead to a decline back to lower support levels. Current trading stands at $85,577, up 1.9% in the past day.
Bitcoin is showing signs of a bullish reversal after enduring weeks of downward price pressure. The cryptocurrency’s weekly Relative Strength Index (RSI) has recently broken its trendline, indicating a potential major breakout and generating optimism in the market.
Recently, Bitcoin has struggled due to escalating global tariff wars, resulting in a price drop exceeding 10% over three months. However, it has stabilised in the low $80,000 range following a low of $74,508 recorded on April 6.
Crypto analyst Titan of Crypto suggested in a post that Bitcoin might be on the verge of a substantial breakout, noting that the weekly RSI surpassing its long-standing trendline precedes significant price momentum shifts. The RSI serves as a momentum indicator, signalling whether BTC is overbought or oversold.
In Titan of Crypto’s analysis, the chart shows Bitcoin’s weekly RSI breaking a downtrend for the third time since September 2024. Previous breakouts in the weekly RSI resulted in notable price rallies, raising expectations for similar future performance.
Utilising a price fractal pattern, Titan estimates that if Bitcoin replicates previous behaviours following RSI breakouts, it could potentially rise to $130,000, surpassing its all-time high and rejuvenating market enthusiasm.
Conversely, analyst RookieXBT highlighted that Bitcoin is currently situated within a falling wedge pattern on the 12-hour chart. Such formations generally resolve upward, with RookieXBT suggesting a breakout could push prices to around $140,575.
In contrast, some analysts, like Ali Martinez, caution that Bitcoin might be forming a bearish rising wedge pattern, which could indicate impending downward pressure. If valid, this pattern might lead BTC back to a critical support level of $79,000.
Other macroeconomic factors are also influencing market dynamics. Ongoing tariff disputes continue to exert pressure on risk assets like Bitcoin. Additionally, Bitcoin recently formed a “death cross,” a bearish indicator, which occurs when the 50-day moving average falls below the 200-day moving average, potentially leading to further losses.
As of now, Bitcoin is trading at $85,577, reflecting a 1.9% increase within the past 24 hours, amidst fluctuating market conditions.
