Widely followed crypto analyst Rekt Capital says that Bitcoin (BTC) is suddenly flashing bullishness after retesting range lows.
The pseudonymous trader tells his 537,300 followers on the social media platform X that Bitcoin is showing bullish divergence on the daily chart.
Bullish divergence, which suggests price will start to increase, occurs when the price of assets records lower lows while indicators, such as the Relative Strength Index (RSI), a momentum oscillator indicator, are witnessing higher lows.
“Early signs of the bullish divergence playing out. However, for BTC to transition into trend continuation and the bullish divergence to fully mature BTC will need to reclaim $97,700 (light blue) as support. Watching for a daily close above ~$97700 and a retest.”
The analyst also says Bitcoin remains in an uptrend after printing a bull flag pattern on the monthly chart.
A bull flag is typically viewed as a bullish pattern, suggesting that an asset is consolidating before potentially igniting new rallies.
“The Bitcoin post-breakout retest of the monthly bull flag is successful thus far. Price is performing the key technical steps to fully confirm the bull flag breakout so as to set itself up for trend continuation going forward. ~$96,700 needs to hold.”
Lastly, the analyst says that Bitcoin may be gearing up for a breakout after holding the $93,500 level as support on the weekly chart.
“Most recently, Bitcoin downside wicked into the weekly range low support at ~$93,500 (green) and has since rebounded. Bitcoin is just consolidating inside its re-accumulation range between $93,500 and $104,000.”
Bitcoin is trading for $97,619 at time of writing, up 1.6% in the last 24 hours.
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