Identify the Bitcoin price trend when a bullish divergence occurs
After breaking the $ 49,000 mark, Bitcoin rekindled hopes for a new year-end high.
For the past month and a half, Bitcoin has had a fairly short pump, three days at most, after a full month of declines. However, can Bitcoin’s rally continue when bullish divergence knocks on the door?
Signs of a wave strong pump
When it established itself in an area above $ 48,000, there were significant bullish divergences, suggesting a possible trend reversal in Bitcoin’s development. One of them was Bitcoin’s collapse of a downtrend on the 8-hour chart, indicating a breakout.
Source: DanBTC
Also, the downward trend in price combined with the upward trend in the middle coin age, miner reserve, and hash rate suggests that the network is looking healthy and Bitcoin is piling up.
In addition, there was a similarly sized bull run in October 2020, just before the 189-day uptrend. When the 140-day delta gradient turns positive, it means that the uptrend is expected to continue for at least 140 days from the moment of the flip.
Source: PlanC
Looking at this development over the long term, the 2-week chart of Bitcoin shows a potential bullish divergence and the RSI hits a double bottom. When the same thing happened in 2016 and 2017, Bitcoin price experienced a massive pump.
Source: TechDev
Note…
For the price movement to be bullish, the next 24 hours could be crucial.
Bitcoin price has risen for the third day in a row at press time, and after falling from its all-time high, it has managed to maintain its bullish outlook for up to three days. If Bitcoin’s uptrend lasts another day, a recovery phase could begin.
Looking at the (hourly) sentiment in the futures market, it appears that Bitcoin is overheating and the estimated leverage is higher than it was on December 3rd, before the price fell from $ 57,000 to $ 42,000.
Source: CryptoQuant
In addition, the hourly foreign exchange reserves, particularly on the spot exchanges, have risen over the course of the last day, indicating possible short-term selling pressure 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 indices looking more bullish than bearish, this Christmas season could bring some joy to Bitcoin holders.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page
Author
Market
Identify the Bitcoin price trend when a bullish divergence occurs
After breaking the $ 49,000 mark, Bitcoin rekindled hopes for a new year-end high.
For the past month and a half, Bitcoin has had a fairly short pump, three days at most, after a full month of declines. However, can Bitcoin’s rally continue when bullish divergence knocks on the door?
Signs of a wave strong pump
When it established itself in an area above $ 48,000, there were significant bullish divergences, suggesting a possible trend reversal in Bitcoin’s development. One of them was Bitcoin’s collapse of a downtrend on the 8-hour chart, indicating a breakout.
Source: DanBTC
Also, the downward trend in price combined with the upward trend in the middle coin age, miner reserve, and hash rate suggests that the network is looking healthy and Bitcoin is piling up.
In addition, there was a similarly sized bull run in October 2020, just before the 189-day uptrend. When the 140-day delta gradient turns positive, it means that the uptrend is expected to continue for at least 140 days from the moment of the flip.
Source: PlanC
Looking at this development over the long term, the 2-week chart of Bitcoin shows a potential bullish divergence and the RSI hits a double bottom. When the same thing happened in 2016 and 2017, Bitcoin price experienced a massive pump.
Source: TechDev
Note…
For the price movement to be bullish, the next 24 hours could be crucial.
Bitcoin price has risen for the third day in a row at press time, and after falling from its all-time high, it has managed to maintain its bullish outlook for up to three days. If Bitcoin’s uptrend lasts another day, a recovery phase could begin.
Looking at the (hourly) sentiment in the futures market, it appears that Bitcoin is overheating and the estimated leverage is higher than it was on December 3rd, before the price fell from $ 57,000 to $ 42,000.
Source: CryptoQuant
In addition, the hourly foreign exchange reserves, particularly on the spot exchanges, have risen over the course of the last day, indicating possible short-term selling pressure 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 indices looking more bullish than bearish, this Christmas season could bring some joy to Bitcoin holders.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page
Latest
Dogecoin Price Gets $5 Prediction, Shiba Inu To Rally 1,100%, And ETFSwap (ETFS) To Jump 135x
AVAX Hits $1B in DeFi, Cardano Expected to Surge—BlockDAG Leads with $110M Presale & 100% Bonus!
Crypto Institutional Investors Move To ETFSwap (ETFS) Amid $500 Million Liquidity Injection Expectations
Press Release
AVAX Hits $1B in DeFi, Cardano Expected to Surge—BlockDAG Leads with $110M Presale & 100% Bonus!
Buyers Rush to Maximise Gains with BlockDAG’s 100% Bonus Offer; Plus, ETH Holds Strong as Solana Challenges Rivals
