Bitcoin Surges to Eight-Month High Amid Oil Price Decline and Fed Rate Hike Expectations

Bitcoin surged to its highest levels in nearly eight months, reaching $85,248 on Monday. This marks a significant milestone for the cryptocurrency, which has been gaining momentum over the past week.

The price action is approaching the breakeven point for US spot Bitcoin ETF investors near $86,000. The latest move higher has implications for the views of many market participants on whether price will hold above the prior local high of $82,950 from May.

However, some analysts are cautioning that a bearish divergence is playing out on the relative strength index (RSI) indicator on daily time frames. This could indicate a lack of underlying momentum to support the highs and increase the risk of a sudden reversal.