Bitcoin Surges 5% to $83,000 as Bullish Signals Emerge

Bitcoin (BTC) approached $83,000 at the March 14 market open as traders anticipated a potential bullish reversal. The cryptocurrency experienced a 5% gain before stabilizing, reflecting cautious optimism amidst broader market uncertainties. The relative strength index (RSI) on the daily BTC/USD chart indicated a possible bullish divergence, where the RSI forms higher lows while the price forms lower lows, suggesting waning seller dominance.

Analyst Rekt Capital highlighted this divergence, noting that reclaiming the previous lows of $84,000 could set the stage for further upward momentum. The key resistance level at $84,000 has been under attack from bulls, with each rejection from this level appearing to weaken, potentially paving the way for a sustained close above this resistance.

Keith Alan, co-founder of Material Indicators, focused on the 21-day and 200-day simple moving averages (SMAs), which stood at $83,740 and $86,800, respectively. He emphasized the importance of a sustained close above the 200-day SMA and a subsequent flip at the 21-day SMA to confirm bullish momentum. Alan also referenced a proprietary trading tool, Trend Precognition, which indicated a developing momentum shift from downward to upward trends.

In the broader market, the S&P 500 saw relief after a 10% drop from its latest all-time highs, entering a technical correction. Meanwhile, gold reached new record highs of over $3,000 per ounce as investors sought refuge from volatile macroeconomic conditions. Bitcoin's relative underperformance against gold became more apparent, breaking a key long-term trendline.