Bitcoin (BTC) is on the verge of a potential breakout as a key leading indicator hits its highest levels since January. The relative strength index (RSI), a popular technical analysis tool, is signaling potential price gains for Bitcoin in the near future.

Data from Cointelegraph Markets Pro and TradingView shows that the RSI for Bitcoin is showing signs of a classic price rebound. Despite BTC/USD making lower lows over the past month, the RSI has been trending upwards, setting higher lows and indicating a bullish divergence. The daily RSI recently broke above the 50 midpoint and successfully retested it as support before reaching new multi-month highs.

Rekt Capital, a well-known trader and analyst, pointed out the positive signs in a recent post, noting the maturing bullish divergence and potential for a breakout above the key price downtrend. Another analyst, Kevin Svenson, highlighted promising signals on the weekly RSI, suggesting that a breakout could be imminent.

While technical indicators are pointing towards a potential price rally, there are concerns about the macroeconomic conditions affecting Bitcoin. The ongoing US trade war and risk-asset rout may hinder the inflow of capital into BTC. Additionally, Bitcoin's price performance in April has been below expectations, with some analysts pointing to external factors such as interest rates and market risks.

Despite the short-term challenges, there are underlying bullish factors that could support Bitcoin's price in the long run. Record global M2 money supply and a weakening US dollar index are seen as positive developments for the cryptocurrency market.

It is important to note that this article does not offer investment advice or recommendations. Every investment decision carries risks, and individuals should conduct their own research before making any financial decisions. As Bitcoin continues to show signs of potential price gains, investors and traders will closely monitor technical indicators and market trends to capitalize on potential opportunities in the cryptocurrency market.

Source: https://cointelegraph.com/news/can-3-month-bitcoin-rsi-highs-bearish-btc-price-seasonality?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound