Bitcoin confirmed a bullish divergence on the daily chart, with price making a lower low while RSI formed a higher low. This is a classic sign of weakening downside momentum and potential for a trend reversal or at least a short-term relief rally.
However, the 200-day moving average (around $83,645) is now acting as resistance. Bitcoin briefly tested this level but failed to break through convincingly. A clean break above the 200 MA would be a bullish signal and could open the door for a move toward the $85,010 level, which was key support before the recent breakdown.
One concern is that volume has not meaningfully increased during this bounce. A strong trend reversal is typically supported by rising volume, so the lack of follow-through could indicate that this is just a relief rally rather than the start of a sustained uptrend.
For now, Bitcoin remains in a corrective phase, and a rejection at the 200 MA could lead to a retest of the $77,000–$78,000 support zone.
However, the 200-day moving average (around $83,645) is now acting as resistance. Bitcoin briefly tested this level but failed to break through convincingly. A clean break above the 200 MA would be a bullish signal and could open the door for a move toward the $85,010 level, which was key support before the recent breakdown.
One concern is that volume has not meaningfully increased during this bounce. A strong trend reversal is typically supported by rising volume, so the lack of follow-through could indicate that this is just a relief rally rather than the start of a sustained uptrend.
For now, Bitcoin remains in a corrective phase, and a rejection at the 200 MA could lead to a retest of the $77,000–$78,000 support zone.
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.