Bitcoin has just closed its weekly candle above the critical $85,000 mark, igniting excitement about a potential trend reversal in the near future. The 2% gain recorded yesterday has triggered a broader market recovery, boosting the performance of several major cryptocurrencies.

Key Moment for Market Direction

Trader Daan Crypto Trades highlighted the significance of the coming week in determining the market’s next direction on higher timeframes. “Next week will be a crucial time to decide where the market is headed on higher timeframes,” he stated. He also emphasized the importance of Bitcoin’s futures closing position on the CME Group exchange, reflecting the broader sentiment of traders who are anticipating a new bullish wave as the trading month comes to an end.

RSI Signals a Potential Breakthrough

Meanwhile, analyst Rekt Capital pointed out promising signals on Bitcoin’s daily RSI chart. “The daily RSI is showing initial signs that the downtrend since November 2024 may have turned into a new support level,” he observed, hinting at a potential shift in momentum.

Significant Weekly RSI Divergence Forming

For analyst Matthew Hyland, the current market developments carry even deeper implications. For the first time in six months, Bitcoin appears to be forming a significant bullish RSI divergence on the weekly chart. “BTC could create its first weekly bullish divergence since September tonight. Right now, it’s in the perfect position,” Hyland noted.

Stockmoney Lizards Dismisses Bear Market Fears

In another notable update, trading group Stockmoney Lizards rejected concerns about Bitcoin entering a prolonged bear market. In their latest analysis, they reaffirmed that the local bottom of $76,000 — identified earlier this month — remains intact.

“While many panic and claim that the bear market is back, the long-term trend channel (green line) remains unbroken,” the report emphasized, accompanied by a chart showing BTC price fluctuations around the long-term bullish trendline. “This correction doesn’t weaken the upward trend; it actually reinforces it.”

Patience Needed for a Full Breakout

However, Stockmoney Lizards acknowledged that the bullish momentum might take time to fully materialize. “This doesn’t guarantee an immediate price surge, but history suggests we are approaching the bottom. How long will it take? No one knows for sure. News, macroeconomic signals, and other factors could influence the timing of the correction. A reasonable estimate would be within the next few weeks,” they concluded.