Renowned cryptocurrency analyst REKT CAPITAL has identified that Bitcoin (BTC) is exhibiting classic pre-rally behavior, with technical indicators and price action signaling potential upward momentum. The pseudonymous analyst, who boasts a following of 543,000 on the social media platform X, highlights that BTC is demonstrating a bullish divergence with the Relative Strength Index (RSI).
A bullish divergence occurs when a momentum-focused indicator, such as the RSI, trends upward while the price remains stagnant or declines. This pattern often foreshadows a potential price reversal. REKT CAPITAL notes that similar divergences were observed in August 2024, August 2023, and November 2022, each preceding significant upward reversals.
“Bitcoin is developing yet another Higher Low on the RSI while forming Lower Lows on the price,” REKT CAPITAL stated. “Throughout the cycle, Bitcoin has formed Bullish Divergences like this on several occasions, each preceding reversals to the upside.”
The analyst further emphasized that Bitcoin’s downward trend could officially be broken once it surpasses the lower high structure, currently positioned around $82,000. “Bitcoin has successfully retested red as support, and the Daily RSI Higher Low continues to maintain itself,” REKT CAPITAL explained. “We’re seeing growing signs of a maturing Bullish Divergence, with price just below the key Price Downtrend. BTC needs to break this Downtrend to enable the Bull Div to play out.”
At the time of writing, Bitcoin is trading at $84,789, slightly above the downward trend line highlighted by REKT CAPITAL, indicating that the anticipated reversal may already be in progress.
Market watchers and investors are closely monitoring these developments as Bitcoin continues to navigate critical technical levels, with the potential for a significant price shift on the horizon.
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