- Bitcoin price is testing $83K, with RSI noting the divergence.
- A close below $84K may lead to another breakout to new highs.
- Bitcoin divergence signals towards potential bullish reversal.
The price action of Bitcoin recently shows the forming of a possible bullish divergence on its Relative Strength Index (RSI) on a daily scale. Analyst Caleb Franzen (@CalebFranzen) kept a close watch on this scenario and stated that for the pattern to completely play out, Bitcoin must close underneath the very key level of $84,000.
As of March 9, 2025, Bitcoin hovered in the $83,000 range, with Franzen being optimistic about the chance of that bullish divergence still being live. An identifiable shift in momentum is apparent on the RSI indicator, which, if confirmed, could potentially mark the beginning of a new bullish phase.
Price Action and RSI Divergence Unfolding
From the analysis of Bitcoin’s price charts, this price movement has been sharply contrary to the RSI action over the last couple of months. Bitcoin had had higher highs late in 2024 and early into 2025, while the RSI had lower highs in that same time, especially obvious with divergence indications between mid-2024 and March 2025.
The divergence simply means that the price is screaming in one direction while the RSI is pushing in another, often indicating some reversal or momentum shift. The green arrow indicates the start of divergence back in late 2024, while the red arrows indicate those price peaks where inherent strength was waning, hinting at bearish signals.
Crucial Zone for Determining Next Move for Bitcoin
Currently, Bitcoin is testing the $83,000 mark while the RSI is at 38.91, which has been a significant pivot point in the past. Bitcoin has to sustain being under $84,000 for the divergence pattern to still be valid, implicating that a newfound upward momentum may be around the corner.
The last time divergence patterns like these appeared in the market was followed by a mass price correction or surge, measuring Bitcoin to break sometime soon from $83,000 to $85,000. In case Bitcoin goes above $84,000, then maybe fresh buying pressure may come in to take achieve some new highs in the market.
Down the Road: What Price Possibilities and Implications Are There for the RSI?
As the market keenly observes, it will now remain to be seen if Bitcoin will manage to break out of the current range and follow the bullish pattern indicated by the RSI divergence; should Bitcoin manage to stay below the $84,000 level as the divergence continues to build, we could see price breaking through the $85,000 resistance level. A break above $85,000 would confirm the bullish divergence and open the door to a resumption of the Bitcoin uptrend, especially with the RSI gaining strength.
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