- Bitcoin moved past $87K after breaking the descending trendline shown in chart.
- RSI rose above 60 while price gained over 10% since divergence.
- Key support at $78K held firm during the rally and added to breakout confidence.
A recent chart shared by the analyst @rektcapital indicates that Bitcoin (BTC) has officially put the stamp of approval on a multi-month downtrend that has been on the scene for some time. With a price of $87,285 and a subsequent possible change in momentum, this breakout comes on the back of incessant resistance at the descending trendline.
If that is the case, perhaps a turning point into a technical uptrend is here for Bitcoin as optimism returns to the wider crypto market. Over the past months, variable degrees of resistance have been offered, but the current breakout above this trendline has some very interesting mentalities going around in the markets. As indicated, the breakdown was overtly confirmed by higher lows on the price structure as well as a distinct bullish divergence on the RSI.
From below 30 to above 60, the RSI indicator sharply gained in favor of the bulls. A high perception from deep market oscillators would imply that upward momentum was being maintained and demand had also returned forcefully. It is just another feather in the cap suggesting that Bitcoin is out of its extended downtrend phase. The oblique support , which is no longer visible below $78,508, gives additional structural confidence to the ongoing rally. During the recent consolidation, the price held above this zone, which was very important for a base to be able to mount the breakout from.
Confirmations via Divergence and Momentum
The other important point on the chart is the clear bullish divergence that was found in the price action versus the RSI. Even as prices made lower lows back in March, RSI was making higher lows, meaning hidden strength was there. This divergence held until mid-April, Bitcoin eventually breaking above resistance.
This divergence is critical in a historical context since it usually marks the possible end of a bearish cycle. Since this divergence, according to the analyst, Bitcoin has seen a price increase of over 10%. It is now being interpreted as technical confirmation that the previous trend is now over.
In addition, the RSI has now also gone well above 50, signaling the adoption of bullish control over the market. The RSI heading above 70 is normally marked by a bullish period. This trait has been in alignment with similar behaviors of trend reversals in the Bitcoin timeline.
An upward-sloping longer-term RSI trendline at the bottom of the chart also confirms this strength from January to April. This consistent rise further helps validate the theory of sustained buying pressure. Market observers are now keeping a close watch to find out whether Bitcoin will remain above this breakout level.
