A crypto strategist, renowned for accurately predicting Bitcoin’s pre-halving correction last year, suggests that BTC might quickly conclude its correction if a certain technical pattern emerges.
The pseudonymous analyst, Rekt Capital, informs his 542,500 followers on the social media platform X that the relative strength index (RSI) for Bitcoin is showing a bullish divergence on the daily chart.
A bullish divergence on the RSI is generally considered a reversal indicator, signaling increased buying momentum even when the asset’s price is moving lower or consolidating.
“There are promising early-stage indications of a Bullish Divergence forming.”
“Reclaiming the earlier lows of $84,000 could position the price to further build this Bull Div.”
The trader notes that BTC is signaling a bullish reversal just as Bitcoin demonstrates signs of seller fatigue.
“Seller volume has continually decreased over the past few days.”
“It has dropped to a level where sellers are generating below-average volume when attempting to seize market control.”
“This presents an opportunity for buyers to start entering the market more actively.”
Rekt further observes that Bitcoin’s resistance around the $84,000 mark seems poised to weaken after being tested multiple times over recent days.
“There have been clear signs indicating a weakening resistance.”
“Now, the price needs to validate whether this resistance is indeed weak enough to transform into support.”
“Bitcoin is just one Daily Close above this level away from advancing further upward.”
At the time of writing, Bitcoin is trading at $83,150.
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