The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Amid a wave of selling pressure across the crypto sector, Bitcoin recorded its lowest weekly close since the second half of 2024 after losing 8% of its value in seven days. According to reports, this sharp decline triggered a surge in negative sentiment and market 'obituaries' for the digital asset. However, the weekly relative strength index (RSI) is displaying a bullish divergence, a technical pattern strikingly similar to the one that preceded the recovery from the 2022 bear market bottom.
In the broader context, peer assets like Ethereum (ETH) faced similar headwinds, dropping approximately 7.5% over the same period per market data, reflecting a broad retreat in risk appetite. Search data indicates that spot Bitcoin ETFs experienced net outflows last week, further compounding the pressure on spot prices. Despite the prevailing gloom, market experts note that technical divergences often serve as early warning signs of a shift from distribution to accumulation phases.
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Sign InTraders should closely monitor key support levels following this weak weekly close. Looking ahead, the upcoming US CPI inflation data next week serves as a major catalyst that could spark further volatility in high-risk assets. Additionally, any shifts in Federal Reserve rhetoric regarding interest rate paths will be crucial in determining the near-term trajectory for Bitcoin and the wider cryptocurrency market.