As Bitcoin (BTC) approaches the $84,000 resistance level, traders are closely monitoring market trends for potential bullish signals. On March 14, as Wall Street opened, Bitcoin circled around $83,000, prompting discussions among traders about the necessary conditions to adopt a bullish stance.
BTC/USD 1-hour chart. Source: Cointelegraph/TradingView
Analyzing the Bullish Divergence in BTC
According to data from Cointelegraph Markets Pro and TradingView, BTC/USD experienced a gain of up to 5% before consolidating. However, the lack of strong momentum at the start of the U.S. trading session is evident, with risk assets remaining cautious due to ongoing macroeconomic concerns, especially regarding U.S. trade tariffs.
Reputable analyst Rekt Capital has reported that the odds of a bullish divergence forming on the relative strength index (RSI) are increasing. This divergence would indicate a potential shift in market dynamics — with the RSI making higher lows while the price prints lower lows, thereby indicating diminishing seller dominance.
“There are early-stage signs of a bullish divergence developing,” Rekt Capital stated on social media. He noted that reclaiming the previous low of $84k could enable BTC to further build on this bullish divergence.
“If this weakening in the resistance persists… This should open up the opportunity for BTC to finally close above this $84k resistance, reclaim it as support, and continue its upward trend.”
BTC/USD 1-day chart with RSI data. Source: Rekt Capital/X
Moreover, Keith Alan, co-founder of Material Indicators, highlighted the significance of key moving averages, stating that the 21-day and 200-day simple moving averages stand at $83,740 and $86,800, respectively. “BTC is poised for another attempt to reclaim the 200-day MA, but a sustainable close above it is crucial,” he commented.
BTC/USD 1-day chart with 21, 200 SMA. Source: Cointelegraph/TradingView
Gold’s Performance Compared to Bitcoin
In other financial news, the S&P 500 showed signs of recovery following a drop of 10% from its peak, initiating a technical correction. Meanwhile, gold has reached new highs exceeding $3,000 per ounce as investors seek safety in turbulent markets. This shift accentuates Bitcoin’s relative underperformance compared to gold, especially as Bitcoin has broken a long-term downtrend against it.
XAU/USD 1-day chart. Source: Cointelegraph/TradingView
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
