- Bitcoin’s RSI below 30 suggests a potential reversal after recent struggles.
- Bitcoin surged past $90,400 but failed to maintain momentum in December.
- Bitcoin remains below $88,000 after volatile movements during Christmas.
Bitcoin has faced significant challenges over the last month. The price fluctuated between $85,000 and $90,000, with several failed attempts to break above key resistance levels. At press time, Bitcoin is trading just above $87,000.
Michaël van de Poppe, a well-known crypto analyst, notes that the Relative Strength Index (RSI) on the daily timeframe has formed a strong bullish divergence for the first time since the correction began. This suggests that a potential upward price movement may be underway.
RSI, a popular momentum indicator, typically shows the strength or weakness of a market by measuring the speed and change of price movements. In this case, Bitcoin’s RSI has dropped below 30, which is considered an oversold condition.
A lower RSI value suggests the asset is under heavy selling pressure, but the bullish divergence signals that the selling momentum may be weakening, pointing to a potential price reversal.
Bitcoin’s Year-End Struggles
As 2025 nears its end, Bitcoin has experienced a year of volatility and price fluctuations. At the beginning of the year, Bitcoin was trading above $94,000.
However, the price gradually decreased, and despite a brief surge earlier in December, it could not sustain upward momentum. This lack of consistency has led to Bitcoin being in the red for the year, with recent trades occurring just below $88,000.
Last week, the release of the US Consumer Price Index (CPI) data showed stronger-than-expected results, briefly pushing Bitcoin’s price to nearly $90,000. However, the surge was short-lived, and Bitcoin quickly faced rejection, dropping below $85,000.
Despite recovering some ground, the price remained sluggish through the Christmas period, struggling to regain upward momentum.
What’s Next for Bitcoin?
As we move toward the new year, Bitcoin’s price action remains uncertain. Michaël van de Poppe believes that the current bullish divergence on the RSI suggests Bitcoin could see a recovery, but the asset will need to break through the $90,000 resistance level to confirm a sustained reversal.
The price volatility seen over the past week indicates that while the market may be preparing for a shift, it is still unpredictable.
The year has been challenging for Bitcoin, with multiple rejections near the $90,000 mark and a failure to break above this key level. The ongoing market conditions suggest that Bitcoin may face further fluctuations as it enters the new year.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
