Bitcoin closed the week on a strong note, hovering just above the $85,000 mark as traders grow increasingly optimistic about a potential trend reversal.
The leading cryptocurrency climbed 1.5% on March 23, outperforming much of the broader market and pulling several major altcoins along with it.
Market data from Cointelegraph Markets Pro and TradingView revealed a surge in weekend activity, with Bitcoin gaining traction ahead of the monthly close. Many analysts are now eyeing a shift in market sentiment, sparked by key technical indicators.
RSI Signals Renewed Strength
Technical analysts have pointed to Bitcoin’s relative strength index (RSI) as a key indicator supporting the bullish narrative. Popular analyst Rekt Capital highlighted that the daily RSI appears to be flipping a long-standing downtrend line—dating back to November 2024—into new support. This move is often interpreted as an early signal of a sustained upward trend.
Fellow trader Matthew Hyland added further fuel to the optimism, noting that Bitcoin is on the verge of forming a weekly bullish RSI divergence for the first time since September. Such divergences are typically seen as early signs of significant upward price movements.
Futures Close Adds to Bullish Case
Trader Daan Crypto Trades pointed to the position of CME Group’s Bitcoin futures closing as another factor worth watching. In a weekend post, he suggested that the coming week could prove pivotal in determining Bitcoin’s direction over higher timeframes.
“The next week will be telling,” he remarked, as momentum builds toward the end-of-month candle close.
Long-Term Bull Market Intact, Say Analysts
Despite recent market volatility, not all experts are convinced a major correction is underway. Analysts at Stockmoney Lizards took a broader view, emphasizing that the long-term uptrend remains unbroken. According to their assessment, the local bottom likely occurred around $76,000 earlier this month—a level that has since been retested.
“Many are panicking and calling for a bear market, but the long-term trend channel is still firmly intact,” the group wrote. “This correction doesn’t invalidate the uptrend—it confirms it.”
While they acknowledged that an immediate price rally might not materialize, they remain confident that the current correction is part of a broader consolidation phase.
“Historical patterns suggest we are entering a bottoming zone,” they noted. “How long will it last? No one can say for sure, but a reasonable estimate would be a couple of weeks—depending on macroeconomic conditions and news events.”
As Bitcoin enters a crucial phase ahead of the monthly close, traders and analysts alike are keeping a close watch on technical signals and market behavior. If momentum continues to build, Bitcoin could be poised for a renewed leg upward, with prices already at $87,167.
