Bullish Bitcoin Signals Clouded by Unfavorable Macro Conditions

Bitcoin's weekly chart is showing signs of a potential technical breakout, according to Real Vision crypto market analyst Jamie Coutts. The analyst highlighted a bullish divergence in the weekly relative strength index (RSI) and a shift in a trend-reversal indicator from neutral to bullish. This setup has historically preceded continued upside in five out of six prior instances.

The weekly RSI divergence occurs when price makes a lower low but the oscillator prints a higher low, suggesting that selling momentum is weakening. The trend-reversal indicator, which tracks momentum shifts, has moved from a neutral yellow zone to a bullish green zone.

Coutts cautioned that global liquidity conditions remain unfavorable despite recent dollar weakness. He emphasized that for Bitcoin to sustain a rally, the U.S. Treasury's mentioned bond buybacks and potential Federal Reserve policy support would need to materialize.