Bitcoin is showing early signs that selling pressure may be easing, just as the price tests an important technical support zone. After sliding lower in recent sessions, the world’s largest cryptocurrency is now trading near the bottom of a descending price channel — an area many traders watch closely for possible trend pauses or rebounds.
What makes this moment especially interesting is the appearance of a bullish divergence on the Relative Strength Index (RSI), a popular momentum indicator. While Bitcoin briefly pushed to a new short-term low, the RSI moved higher instead of following price down. This kind of divergence often suggests that sellers are losing strength, even if the price itself hasn’t turned higher yet.
In simple terms, price is slipping, but momentum is no longer confirming that move. That combination frequently appears near local bottoms.
Support zone draws attention
The current price area carries added importance because several technical factors are lining up in the same place. Bitcoin is sitting near:
- The lower boundary of a descending channel
- The Value Area Low from the broader trading range
- A zone where buyers previously showed interest
When multiple support signals cluster together, traders often refer to it as a “confluence zone.” Markets tend to react in these areas, either with a bounce or a decisive breakdown.
So far, Bitcoin has managed to stay above this support. On lower time frames, small rebound attempts are already visible. While that doesn’t confirm a trend change, it does suggest that aggressive selling may be slowing.
Why the RSI divergence matters
Bullish RSI divergence happens when price makes a lower low but the indicator forms a higher low. It’s a classic warning sign that downside momentum is fading. The signal doesn’t guarantee a reversal, but when it appears at major support, it becomes more meaningful.
In this case, the divergence is forming right where buyers would be expected to defend. That combination raises the odds of a short-term relief bounce — a temporary rally that helps reset oversold conditions.
Where could price head next?
If Bitcoin continues to hold this support and builds stability over the coming sessions, the next natural target would be the 0.618 Fibonacci retracement of the recent decline. This level often acts as a magnet during corrective rallies and could serve as the first upside checkpoint.
Any bounce toward that zone would still be considered corrective, not a full trend reversal. Strong volume and a break above nearby resistance would be needed to confirm a more durable recovery.
Caution still warranted
Despite these encouraging signals, the bigger picture remains mixed. On higher time frames, Bitcoin is still under pressure and moving within a broad trading range. In such environments, price often rotates between support and resistance, producing frequent short-term rallies and pullbacks.
The bullish setup would quickly lose credibility if Bitcoin breaks decisively below the current support zone, especially with rising sell volume. That would cancel the divergence and reopen the door to deeper losses.
What traders should watch
For now, attention remains on whether Bitcoin can stay above this confluence support and attract fresh buying interest. A steady base and rising volume on any rebound would strengthen the case for a relief bounce.
If support holds, a short-term rally looks increasingly possible. If it fails, bearish momentum could return quickly. Either way, the next few sessions may offer important clues about Bitcoin’s near-term direction.
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