Bitcoin’s Recent Comeback

Bitcoin has made a strong comeback, reclaiming the $80,000 level after dipping to a four-month low. This recovery has sparked optimism among investors, although uncertainty remains as key U.S. CPI data is expected on March 12.

Bitcoin’s Recent Price Swing

Recently, Bitcoin slipped to about $76,800, raising concerns of a deeper sell-off. However, it quickly rebounded and now steadies above $82,000. Despite the recovery, Bitcoin is still down by 14% in 2025 and sitting 26% below its all-time high.

A significant factor behind Bitcoin’s recent dip was the reaction to former U.S. President Donald Trump’s proposal for a national Bitcoin reserve. Initial excitement following the announcement faded when no actual government purchases were made, leading to investor disappointment.

Additionally, broader economic concerns (inflation fears, rising interest rates, and trade tensions) have pressured Bitcoin’s price. Although recent recovery offers some strength, experts caution that volatility is likely to continue.

Strong RSI Seeing a Recovery

From a technical standpoint, Bitcoin’s derivatives market indicates stability. The annualized premium on Bitcoin futures remains at 4.5%, even after the sharp decline observed between March 2 and March 11.

This signals resilience, as past major crashes led this premium to drop to zero or negative values, indicating extreme panic among investors.

The Relative Strength Index (RSI), which assesses price momentum, has risen from 30 to 40, suggesting reducing selling pressure. To confirm a robust recovery, the RSI needs to surpass 50.

What’s Next for Bitcoin?

Should Bitcoin maintain its upward trajectory, analysts anticipate it could surge toward $90,000. However, the upcoming days will be critical in assessing whether this recovery is sustainable or if another dip is imminent.