Svmuu reported that Bitcoin (BTC) has formed only the second "weekly bullish divergence" in its history on the weekly chart. This technical signal previously preceded a 715% surge in BTC following the FTX collapse. This divergence indicates that while prices are still falling, momentum indicators are starting to recover, suggesting selling pressure may be weakening. Analysis points out:
1. BTC's weekly chart shows a rare bullish divergence, with a potential target around $90,000.
2. The current price is holding near the 200-week moving average (approximately $62,000). Historically, this level has often served as the bottom area during bear markets (2015, 2018, 2020).
3. The previous weekly divergence occurred after the FTX collapse in 2022, after which Bitcoin rallied from around $15,500 to $126,200, a gain of 715%.
Technical analysis shows that BTC's weekly RSI has recovered from oversold territory to form a higher low, while the price continues to decline, constituting a bullish divergence signal. Analysts suggest that if BTC breaks through the $64,000-$65,000 range, it could first target $71,500-$73,000, and potentially reach the CME gap at $79,000. The area around the 50-week moving average, approximately $91,755, is seen as the next potential resistance level, while the region above $90,000 also represents long-term resistance.
Despite the bullish signal, Bitcoin remains in a weekly bear flag downtrend. If it breaks below the descending channel, the price could fall back to around $50,000 in the short term, unless it reclaims the lower trendline to form support. Overall, BTC is at a critical technical juncture with both bullish and bearish factors at play. Investors need to monitor the dynamic interplay between support at the 200-week moving average and resistance at the 50-week moving average. (Cointelegraph)