The king coin has rekindled market hopes for a higher Bitcoin price by the end of the year after breaking the $ 49,000 mark, after the price had fallen more than 30% from its all-time high on November 10th.
Over the past month and a half, Bitcoin’s recovery from the decline has been a more short-term pump that lasted three days or less. While most of the macro market signals look bullish while the price remains above $ 48,000, BTC’s drop of $ 49.5,000 above the rate has sparked some skepticism about the near-term development of this currency.
However, can BTC’s rally continue when bullish divergence knocks on the door?
Signs of a pump
As Bitcoin established itself above $ 48,000, there were significant bullish divergences that indicated a reversal in BTC’s development. One of the key deviations is a collapse in BTC on the 8-hour chart, indicating a price breakout.
Additionally, the downward trend along with the upward trend in median coin age, miner reserve, and hash rate suggest that the network is looking healthy and the coins are piling up.
Additionally, before the 189-day uptrend, there was also a big surge in prices from the same level we found support in October 2020. When the 140-day delta gradient turns positive, it indicates that the uptrend is likely to continue for at least 140 days from the moment of the flip.
Looking at this development over the longer term, the 2-week chart of BTC shows a hidden bullish divergence, with the price and RSI forming a double bottom. When the same thing happened in 2016 and 2017, the price of BTC saw a massive spike.
However, with the price dropping from $ 49,000, Bitcoin could be declining in the short term. In fact, the next 24 hours could be crucial for price action to be bullish.
Note…
Bitcoin price has rallied for the third day in a row at press time, and after falling from its all-time high, BTC has managed to maintain its bullish outlook for up to three days. Should BTC’s uptrend continue for another day, a rally could actually take place.
Looking at the (hourly) sentiment in the futures market, it looks overheated for BTC and the estimated leverage is higher than it was on December 3rd, before the massive dumping from $ 57,000 to $ 42,000.
Source: CryptoQuant
In addition, hourly foreign exchange reserves (especially spot exchanges) have increased over the past day, suggesting possible short-term selling pressures that could lead to short-term price declines. In this case, the upcoming volatility could be a good opportunity for day traders.
With the daily indicators looking more bullish than bearish, it looks like the Christmas season might be some fun for the BTC HODLers.