Analyst: Ahead of CPI Release, Bitcoin RSI Indicator Shows Bullish Divergence

BlockBeats News, March 12th, Coindesk analyst Omkar Godbole stated that Bitcoin fell below $80,000 earlier this week to a multi-month low, while the relative strength index (RSI) (a widely used momentum oscillator indicator) hinted at a potential bullish rebound. The indicator generated a higher low, contradicting the lower low on the Bitcoin price chart, resulting in a so-called bullish RSI divergence. This indicates that although the price is falling, the selling pressure is weakening, potentially signaling an upcoming bullish trend reversal.

The analyst further added: "The timing of this pattern today couldn't be more interesting as the U.S. Consumer Price Index (CPI) for February is set to be released at 8:30 p.m. Beijing time, expected to show progress. The BTC RSI bullish divergence implies that the stage is set for a positive response to potential soft readings."

According to CNBC reports, the data is expected to show that the overall CPI and the core CPI, which excludes food and energy, both rose by 0.3% month-on-month in February. This means the overall CPI has an annual increase of 2.9% and the core CPI has an annual increase of 3.2%, both down 0.1 percentage point from January.