Bitcoin’s daily chart is showing a significant shift in momentum, with a confirmed bullish divergence now in play. The price made a lower low while the RSI printed a higher low and has since turned upward, confirming the divergence. This is a strong signal that downward momentum is weakening, and buyers are stepping in.
The RSI has now exited oversold territory, reinforcing the idea that a local bottom may be in. Additionally, the recent bounce came after filling bids near $77,000 and testing key support.
However, the 200 MA (red line) continues to act as resistance. A clean break and hold above this level would further strengthen the bullish case. Immediate resistance lies at $85,000 and $91,000 — a reclaim of these levels would signal a potential shift back into an uptrend.
Volume has also increased during this bounce, suggesting that buyers are becoming more aggressive. If this trend continues and price starts printing higher highs and higher lows, Bitcoin could be setting up for a larger recovery.
The RSI has now exited oversold territory, reinforcing the idea that a local bottom may be in. Additionally, the recent bounce came after filling bids near $77,000 and testing key support.
However, the 200 MA (red line) continues to act as resistance. A clean break and hold above this level would further strengthen the bullish case. Immediate resistance lies at $85,000 and $91,000 — a reclaim of these levels would signal a potential shift back into an uptrend.
Volume has also increased during this bounce, suggesting that buyers are becoming more aggressive. If this trend continues and price starts printing higher highs and higher lows, Bitcoin could be setting up for a larger recovery.
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.