Why Hidden Bitcoin Bulls Could Be Ready To Charge

Bitcoin price It is attempting its first major recovery since dropping below $20,000 per BTC during the recent crypto market contagion. A subtle bullish divergence could indicate that although the selloff was intense, the bulls have been waiting and will start charging soon.

Here is a closer look at a possible bullish continuation signal on the weekly BTCUSD price chart.

Crypto bulls lie in wait, soon they can be ready to ship

Bitcoin became a household name in late 2017 after hitting nearly $20,000 per coin and sending the entire crypto market into a historic rally. After a long bear market, prices were expected to rise significantly.

Notorious now Inventory to Flow Model I expected the highest cryptocurrency to reach over $100,000 per BTC so far. But instead, prices returned to the levels of 2017. Many altcoins corrected to the prices from 2013.

Related reading | How the Weekly RSI Could Indicate that Bitcoin Bottomed Inside

Although the sell-off took more than 74% of the bitcoin price, the bulls may have been waiting and planning their next move. Hidden bullish divergence on BTCUSD Weekly Relative Strength Index It was formed from the bottom of Black Thursday that brought the leading cryptocurrency below $4,000 per coin.

The pullback at the time was a spring that led to the bullish rally of 2020 and all-time new highs throughout 2021. With a possible continuation signal on the weekly RSI, is Bitcoin ready to pick up where it left off?


The weekly RSI reached the most oversold conditions ever | Source: BTCUSD on TradingView.com

Is This Bitcoin RSI Hidden Bullish Divergence Signal “Ongoing?”

weekly RSI Shows a potential hidden bullish divergence. In the example above, it shows that the indicator is making a lower low, while the price action is making a higher low. This type of behavior usually indicates a continuation of the underlying trend – which for Bitcoin has always been bullish.

The same weekly RSI also reached Most cases of oversold In the short price history of cryptocurrencies. Even better for the bulls, the RSI is back out of the oversold territory and above reading 30. The above chart also depicts that the RSI may break through the moving average based on the RSI.

Related reading | Bitcoin Weekly RSI Sets Record For Most Oversold In History, So What Comes Next?

If Bitcoin is to continue its bullish run and pick up where it left off, the first major area to recover is $29,000. If BTCUSD can re-enter the multi-year trading range, the bulls could take a shot at the other side of the range near all-time highs in 2021.

But it all depends on the confirmation of this bullish divergence, something we will really know in hindsight.

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Featured image from iStockPhoto, Charts from TradingView.com

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