Bitcoin enthusiasts have reasons to be optimistic. A prominent crypto trading analyst, Roman, has identified several technical signals suggesting a bullish continuation for Bitcoin. In his latest analysis, posted on X, Roman highlights key indicators that point to a potential uptrend, encouraging cryptocurrency traders to pay close attention.
Read on to learn more about this bullish signal a crypto trader should never miss!
Weekly Bullish Divergence on Bitcoin Chart
Roman’s analysis focuses on the 1-week Bitcoin chart, where each candlestick represents one week of price action. He points out that with the recent weekly close, Bitcoin has established a third bullish divergence between its price and the Relative Strength Index. This occurs when the price makes lower lows while the RSI makes higher lows, suggesting weakening selling pressure and a potential upward reversal.
Volume Analysis: Signs of Diminishing Selling Interest
In addition to the bullish divergence, the analyst notes a significant observation in Bitcoin’s price action: the volume. He explains that the recent price movement down or sideways has been accompanied by decreasing volume. In a bullish context, this indicates that selling interest is diminishing. As fewer participants are willing to sell at lower prices, it sets the stage for buyers to step in and drive the price up.
Bollinger Bands Squeeze: Preparing for Increased Volatility
The analyst also highlights the behaviour of Bollinger Bands on the Bitcoin chart. Currently, the bands are squeezing, which means they are contracting and moving closer together. This squeeze indicates a period of low volatility and often precedes a breakout, signalling an upcoming increase in volatility. Traders watch for such squeezes as they can lead to significant price movements, providing potential trading opportunities.
In conclusion, combining these factors – three bullish divergences, decreasing volume, and a Bollinger Bands squeeze – Roman’s analysis suggests that Bitcoin is poised for an uptrend continuation
Also Read: Here’s How Much Bitcoin Price Can Surge In July, Top Analysts Weigh In
