Renowned cryptocurrency analyst Rekt Capital indicates that Bitcoin (BTC) is exhibiting classic pre-rally behavior as various technical indicators and price patterns signal optimism.
The analyst, who remains anonymous, informs his 543,000 followers on the social media platform X that BTC is demonstrating a bullish divergence with the relative strength index (RSI).
A bullish divergence occurs when a momentum indicator like the RSI rises, while the price either declines or remains flat, hinting at a potential price reversal.
Rekt Capital notes that similar divergences were present in August 2024, August 2023, and November 2022.
“Bitcoin is forming another Higher Low on the RSI while the price is creating Lower Lows.
Throughout its cycle, Bitcoin has experienced such Bullish Divergences multiple times already.
Each Bull Div has preceded upward reversals.”
Focusing more closely, the analyst states that BTC’s downward trend will be considered officially broken once it achieves a clean break of the current lower high structure, which is approximately at $82,000.
“Bitcoin has effectively retested the range as support, and the Daily RSI Higher Low remains intact.
Significant indicators of an advancing Bullish Divergence are emerging here, with price just beneath the pivotal Price Downtrend (blue).
For the Bull Div to manifest, BTC must break this Downtrend.”
As of this writing, Bitcoin is trading at $84,789, slightly above Rekt Capital’s indicated blue downward trend line in the chart, implying that a reversal may be commencing.
Follow us on X, Facebook, and Telegram
Don’t Miss a Beat – Subscribe to receive email alerts directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should conduct their own research before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. Please be aware that your transfers and trades are at your own risk, and any potential losses are your responsibility. The Daily Hodl does not endorse the purchase or sale of any cryptocurrencies or digital assets, nor does The Daily Hodl serve as an investment advisor. Please note that The Daily Hodl engages in affiliate marketing.
Generated Image: Midjourney
