Bitcoin just saw its first BULLISH weekly candle close in many months… 👀

After today’s weekly candle close, we can see that Bitcoin has officially closed back above $72k. This is absolutely huge for the bulls for one specific reason, and that’s the weekly RSI. As we can see, there is now some underlying bullish divergence forming on the RSI after breaking out of its downtrend, which is a very good sign for the bulls out there.
With that being said, it’s important to understand that this factor alone does not mean a macro reversal is coming next. To properly evaluate whether a reversal is coming or not, we have to look at the strength, structure, and trend. Until all three of these factors are met, we cannot confirm a reversal. Right now, we do have strength leaning toward being bullish, but the price structure and trend are not.
Looking at Bitcoin’s structure, we can see that price is still below the major macro resistance level sitting around $74k–$78k. To see our structure start to flip bullish, we would need to see weekly candles start closing above this level, which we have yet to see. And if we look at Bitcoin’s trend, we are still clearly making lower highs and lower lows.
Not only are our structure and trend still bearish, but the rest of the financial markets are not helping push a bullish macro scenario for Bitcoin. The DXY is officially breaking out to the upside (which has an inverse correlation to risk assets), and the stock market is currently collapsing amid uncertainty surrounding the war in the Middle East. All of these factors are just more headwinds Bitcoin would have to face if we want to see a reversal start to form.
So although we are seeing some good signs pointing toward a possible reversal via bullish momentum on the RSI, the bias should still be lower prices in the near future. As always, this is something we will be keeping a very close eye on.