After struggling below the $115,000 mark for roughly two weeks, Bitcoin’s price has successfully broken through that barrier. The leading cryptocurrency is currently maintaining its position above $114,000, demonstrating renewed positive momentum over the past week.
Analysts suggest that a developing, yet unseen, bullish divergence pattern, based on recent price activity, could serve as a catalyst, potentially propelling Bitcoin to new record levels.
Hidden Bullish Signals Emerge for Bitcoin
A technical assessment of Bitcoin’s weekly price chart, shared via X by crypto market observer CrypFlow, indicates that Bitcoin may be preparing to continue its upward trajectory and establish new all-time highs.
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Bitcoin’s most recent weekly closing price confirms a higher low compared to the low point it experienced in June (below $100,000) following the pullback after its August peak. This is evident in the weekly candlestick chart.
Interestingly, while the price chart displayed a higher low, the Relative Strength Index (RSI) registered a lower low during the same period. This contrast between price and momentum generates a ‘hidden bullish divergence,’ a technical signal that often points to a continuation of the existing upward trend.
The chart posted by CrypFlow shows Bitcoin successfully defending a crucial support area around $114,000 and currently exhibiting two consecutive weeks of positive candlestick patterns. According to the analyst, a validated bullish divergence could set the stage for Bitcoin to reach unprecedented levels. As of this report, Bitcoin’s value is roughly 5.7% below its all-time peak of $124,128.
Stochastic RSI Turns Positive
The stochastic RSI on the weekly chart has recently indicated a bullish shift, although final confirmation awaits the upcoming trading sessions. The previous instance of a similar bullish flip on the weekly timeframe occurred in April, preceding a seven-week streak of positive price gains for Bitcoin. A comparable scenario could potentially lead to at least five more weeks of bullish momentum.
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The cryptocurrency market could experience volatility due to upcoming significant macroeconomic events. The Federal Open Market Committee (FOMC) is scheduled to convene on Wednesday, with many anticipating an interest rate reduction of either 25 or 50 basis points. Historically, such rate cuts have influenced investor sentiment favorably towards Bitcoin and other prominent cryptocurrencies.
Currently, Bitcoin is trading at $117,040, showing a 9% increase since the beginning of September, suggesting the continuation of the bullish trend.
Featured image from Pixabay, chart from Tradingview.com