Bitcoin’s daily chart is showing a strong recovery from the recent low around $76,500. I have had standing bids at $77,000 for weeks, which finally filled.
The chart is now presenting an unconfirmed bullish divergence — price made a lower low while the RSI held a higher low and is now turning up from oversold territory. This is a classic reversal signal, indicating that downward momentum is weakening and buyers are stepping back in. We need to see price close with this clear elbow up on RSI. This also exists on the 12-hour, with smaller divergences on lower time frames.
Additionally, today’s candle is forming a bullish engulfing candle, which fully engulfs the previous day’s bearish candle. This signals a potential shift in momentum toward the upside.
The 200-day MA (red line) was lost and is currently acting as resistance. A reclaim of this level would further strengthen the bullish case. Immediate resistance lies around $85,000 and $91,000 — a close above those levels would suggest that the recent downtrend is reversing.
For now, the key levels to watch are a clean breakout above the 200 MA and continuation of the bullish divergence signal on RSI. If RSI remains elevated and price starts making higher highs, the bulls could regain full control.
The chart is now presenting an unconfirmed bullish divergence — price made a lower low while the RSI held a higher low and is now turning up from oversold territory. This is a classic reversal signal, indicating that downward momentum is weakening and buyers are stepping back in. We need to see price close with this clear elbow up on RSI. This also exists on the 12-hour, with smaller divergences on lower time frames.
Additionally, today’s candle is forming a bullish engulfing candle, which fully engulfs the previous day’s bearish candle. This signals a potential shift in momentum toward the upside.
The 200-day MA (red line) was lost and is currently acting as resistance. A reclaim of this level would further strengthen the bullish case. Immediate resistance lies around $85,000 and $91,000 — a close above those levels would suggest that the recent downtrend is reversing.
For now, the key levels to watch are a clean breakout above the 200 MA and continuation of the bullish divergence signal on RSI. If RSI remains elevated and price starts making higher highs, the bulls could regain full control.
scott.melker@texaswestcapital.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
scott.melker@texaswestcapital.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.