Recent insights from Coindesk analyst Omkar Godbole reveal that Bitcoin has dropped below the significant threshold of $80,000, reaching a multi-month low. The relative strength index (RSI), a crucial momentum oscillator, suggests a potential bullish turnaround as it displays a higher low, which contrasts with the lower low observed on Bitcoin’s price chart. This phenomenon, known as bullish RSI divergence, signifies that while the price is in decline, the selling pressure is notably easing, indicating a possible shift towards a bullish trend.
The timing of this development is particularly noteworthy, coinciding with the impending release of the U.S. Consumer Price Index (CPI) for February, scheduled for 8:30 p.m. Beijing time. Market expectations suggest that the data will show positive movement. The bullish divergence in BTC’s RSI highlights the potential for a favorable market reaction in light of anticipated softer CPI readings.
According to reports from CNBC, projections indicate a month-on-month increase of 0.3% for both the overall CPI and the core CPI, which excludes volatile food and energy prices. This would result in an annual increase of 2.9% for the overall CPI and 3.2% for the core CPI, both reflecting a modest decline of 0.1 percentage point compared to January.