Crypto markets today have been fairly trading under the bullish influence which was fueled by the latest CPI price which was lowered to 6.5%. The Bitcoin (BTC) price began rising high with the speculations of the latest CPI rates, which surged magnificently on the announcement. Now that the inflation rates have been lowered, it could be a bearish signal for the crypto space.
Bitcoin price is currently trading very close to $19,000 and may even rise beyond these levels any time from now. However, the bears appear to have held the levels above $19,500 and hence the possibility of rejection haunts the BTC price rally.
A well-known analyst called AnonymousCrypto Predictions discovered the hidden bearish divergence and believes the price may slide down to form new bottoms very soon.
The analysts here compared the RSI (Relative Strength Index) of Bitcoin in the 2014 bear market to that of the recent 2022 and found that the rally may not have found its bottom.
“Once we finally broke out we still came down to put in a new low (Real low),” he said.
Responding to a query as to why the pattern may repeat, the analyst asked to compare with the RSI of the 2022 bear market. To one’s surprise, the RSI has formed a similar trend and has now raised high, rebounding from the lows. Therefore, the analyst believes that star crypto may find the bottom of the current bear market soon.
Collectively, the bearish market is expected to persist and if Bitcoin’s (BTC) price faces a rejection, it may certainly not be a minor one.