Munzir HakimiTable of Contents
Market Insights
Bitcoin’s recent performance has captured attention, with a 5% increase over the last 24 hours, bouncing from a low of $76,450 to a high of $83,786. This upward movement is notable as it retests the 50-week exponential moving average (50W-EMA) as support. maintaining this position since August 2023 indicates a long-term bullish trend for Bitcoin.
Bullish Indicators
Price and RSI Divergence
Bitcoin’s charts reveal multiple bullish divergences between price and the relative strength index (RSI). Thes divergences suggest improving bullish momentum that could reverse the current bearish trend:
- The price made lower lows while RSI formed higher lows.
- Such setups have historically indicated potential reversals.
Liquidity Sweep
Recently, Bitcoin swept below its previous low at $78,150 to collect liquidity on the downside. This move allowed BTC to rebound above $80,000:
- Over $250 million in leveraged positions remain on the upside.
- A rally towards $85,000 – $87,000 is anticipated in coming days.
Technical Patterns
inverse Head and Shoulders
On shorter time frames like the one-hour chart, Bitcoin has formed an inverse head-and-shoulders pattern:
- Confirmation requires closing above the neckline at $83,800.
- A prosperous breakout could target around $89,000, aligning with Fibonacci retracement levels.
However:
- A drop below $78,500 would invalidate this bullish setup.
Future Outlook
Analysts predict consolidation near resistance levels between $86K and $88K but caution about potential drops due to strong demand zones around $74K-$70K.
Final Thoughts
In Summary
The recent movements in Bitcoin indicate promising signs for traders looking for short-term gains while remaining cautious about market volatility ahead.
