Bitcoin's Potential Breakout as RSI Reaches New Highs

According to Cointelegraph, Bitcoin (BTC) is showing signs of a potential breakout as its relative strength index (RSI) reaches its highest levels since January. The RSI, a key indicator of market momentum, suggests that BTC price gains may be on the horizon. Historically, Bitcoin bull runs have been preceded by specific RSI signals, and current daily timeframes indicate favorable conditions for a BTC price rebound. In recent weeks, BTC/USD has experienced lower lows, while the RSI has trended in the opposite direction, setting higher lows and indicating a bullish divergence. The daily RSI recently broke above the 50 midpoint, successfully retesting it as support before reaching new multimonth highs. This development has caught the attention of traders and analysts, including Rekt Capital, who noted the successful retest of support and the maintenance of a higher low in the RSI. Rekt Capital highlighted growing signs of a maturing bullish divergence, with the price just below a key downtrend. Another analyst, Kevin Svenson, observed promising signals on the weekly RSI, noting that confirmed weekly RSI breakouts have historically been reliable indicators of macro breakouts. He emphasized that full confirmation of this breakout is expected within days. Meanwhile, Bitcoin market participants are also monitoring a downward-sloping trendline that has been in place since January's all-time highs. Despite the bullish signals, some analysts remain cautious due to challenging macroeconomic conditions. The ongoing U.S. trade war and risk-asset volatility have created an environment where capital influx into Bitcoin is uncertain. Network economist Timothy Peterson recently highlighted that April's BTC price performance is below the median, attributing this to high interest rates and other market risk factors. He noted that this trend is unlikely to change soon. Other perspectives suggest that while April may be lackluster, bullish factors such as record global M2 money supply and a weakening U.S. dollar index could eventually support Bitcoin's growth. As always, readers are advised to conduct their own research and consider the risks involved in investment and trading decisions.