#CryptoCPIWatch

Bitcoin could reach 130k Yes, the bullish divergence in Bitcoin's RSI may indicate a possible recovery before the release of the U.S. CPI. This divergence suggests that the bearish momentum of Bitcoin's price has weakened, and that investors may be buying more amidst the price drop, which could indicate a future recovery.

More detailed explanation:

Bullish Divergence:

Bullish divergence occurs when the price of an asset makes a lower low, but the RSI makes a higher low. This divergence suggests that the bearish momentum of the price is weakening, and that buying pressure may be gaining ground.

RSI (Relative Strength Index):

The RSI is a technical indicator that measures the magnitude of recent price changes to assess whether an asset is overbought or oversold.

U.S. CPI (Consumer Price Index):

The CPI is a key indicator of inflation in the U.S., and the release of this data is expected to affect asset prices, including Bitcoin.

Possible Recovery:

Seeing that the bullish divergence in Bitcoin's RSI coincides with a possible softer inflation reading, the market may be anticipating a recovery in Bitcoin before the release of the U.S. CPI.

In summary:

The bullish divergence in Bitcoin's RSI could indicate a possible recovery before the release of the U.S. CPI, as the market may be anticipating softer inflation. This divergence suggests that the bearish momentum of Bitcoin's price is weakening, and that buying pressure may be gaining ground. However, it is important to note that divergences are not always definitive, and one should consider the possibility that Bitcoin's price may continue to fall before recovering.