Bitcoin Key Momentum Indicator suggests a bullish divergence as BTC sticks at $ 33,000

The recent decline in the Bitcoin (BTC) market threatens exhaustion before confirming an official bearish collapse, thus reflecting a classic momentum-based oscillator.

RSI makes a higher low

Called the Relative Strength Index or RSI, the indicator measures the speed and change in direction of price movements. It works within a certain range of numbers – from 0 to 100. The closing price is RSI to 0, the weaker the price momentum. Conversely, the RSI near 100 reflects a period of strong momentum.

The range also helps identify buying and selling opportunities for the asset. In particular, an RSI below 30 means that the asset is oversold and therefore represents attractive purchasing power. Meanwhile, an RSI above 70 indicates an overbought asset, meaning its owners will eventually sell it for a profit.

RSI also enables traders to identify buy / sell opportunities based on divergences between price and momentum. For example, if the price hits a new low but the RSI hits a higher low, it is considered a buy signal – bullish divergence. Conversely, a bearish RSI divergence occurs when price hits a new high but the RSI makes a lower high.

So it appears that Bitcoin is confirming a bullish divergence.

Independent market analyst CryptoBirb Job Price-momentum deviation on the Bitcoin one-day chart. In it, the nicknamed legal entity noted that BTC / USD was making a series of lower lows around the same time as its RSI was rising while it was making higher lows.

Bitcoin Key Momentum Indicator suggests a bullish divergence as BTC sticks at $ 33,000 5
Bitcoin price is falling against the rising RSI. Source:, CryptoBirb

The statement comes as the BTC / USD rate corrects down after making a domestic high at $ 36,675 on June 29th. However, as of Friday’s session in London, the pair is trading below $ 33,000. The RSI fell along with the recent bearish move and is close to 42 at press time, a neutral to bullish area.

More headwinds for Bitcoin

The bearish sentiment in the Bitcoin market continues amid a series of pessimistic events. This includes a global crackdown on cryptocurrencies that began with a ban in China in May and spread to the UK, India, South Africa and the United States.

For example, the Financial Conduct Authority has banned the world’s leading cryptocurrency exchange, Binance, from conducting regulated activities in the UK.

Further turbulence arose from hints of restrictive behavior by the Federal Reserve. The US Federal Reserve surprised Bitcoin investors with its sudden intention to control inflationary pressures with a final rate hike in 2023. BTC / USD is down more than 28% after the Fed’s big reveal, but rebounded after finding reliable support near $ 30,000.

However, the bulls are still failing to maintain the upward trend in Bitcoin price above $ 40,000. As a result, the cryptocurrency is stuck in the $ 30,000 to $ 40,000 range and not showing a clear short-term trend.

Bitcoin Key Momentum Indicator hints of bullish divergence as BTC hit $ 33,000 7.  holds on
Bitcoin expects to retest its popular channel’s support trendline following the recent pullback. Source:

Konstantin Anissimov, CEO of CEX.IO, also noted that accredited investors have started to distance themselves on Bitcoin’s environmental impact. He added that mainstream interest in cryptocurrencies will return as miners turn to alternative sustainable energy options.

Anissimov told Cointelegraph: “With environmental concerns no longer a concern, more institutional investors are likely to start believing in digital currencies again and buying more.”

Bitcoin has a short-term forecast of $ 50,000 and a longer-term forecast of $ 75,000.



970x90.gif (970×90)