Bitcoin price is flashing a bullish divergence on the daily chart, while liquidation volumes surged on Monday.
On the daily timeframe, Bitcoin price has remained in a clear downtrend since mid-January. Still, the Relative Strength Index (RSI) is starting to climb, forming higher lows even as the price continues to print lower lows. This setup is known as a bullish RSI divergence, and it often suggests that bearish momentum is weakening. In many cases, it has also appeared ahead of a reversal attempt or a short-term bounce.
Beyond the RSI signal, more indicators are leaning positive. The MACD histogram and key moving averages are improving, and the MACD line has moved above the signal line. Many traders view this crossover as an early clue that buying strength is returning. Taken together, these signals imply that bulls are gradually pushing back.
Bitcoin Bulls Brace for a Pivotal Week
This change in momentum followed a rebound attempt after Bitcoin price dipped close to the $65K support area on Thursday. Price then moved higher in the days that followed, but it ran into selling pressure near $71K again—marking the second rejection around that level within a week. As a result, many market participants stayed cautious and waited for major economic releases this week.
Key events that could shape market sentiment include:
- Wednesday, Feb. 18: Remarks from Federal Reserve Governor Michael S. Barr, expected to discuss how Artificial Intelligence connects with the labor market.
- Wednesday, Feb. 18: The Federal Reserve’s January meeting minutes, which may offer more guidance on the path of interest rates.
- Friday: U.S. Q4 GDP and core PCE inflation reports, both known for moving risk markets.
These macro signals could influence expectations about monetary policy through the rest of 2026. Therefore, they may play a major role in where Bitcoin price heads next.
Key Levels to Watch
For now, the technical picture suggests Bitcoin price may have room to push higher, but traders are locked on two critical zones:
- $71K resistance: The immediate ceiling. A clean breakout and hold above this level could set up a move toward $75,000, a zone that has mattered in prior market phases.
- $65,000 support: The key floor. If Bitcoin price falls below it, the downtrend could strengthen and increase the risk of a slide back toward the $60K low from Feb. 6.
Liquidations Surge Across Crypto
Meanwhile, liquidation activity has spiked across the broader crypto market. In the past 24 hours, nearly $300 million in positions were wiped out, with Bitcoin accounting for more than $75 million of those liquidations. If forced exits continue at this pace, they could keep Bitcoin price under pressure in the short term—even if the bullish signals remain in place.
