Bitcoin
Don’t miss this bullish signal!
Well, it seems to be looking Bitcoin bulls again! A prominent cryptocurrency trading analyst, Roman, has identified several technical signals suggesting a bullish continuation for Bitcoin. In his latest analysis, published on X, Roman highlights key indicators that point to a potential uptrend, encouraging cryptocurrency traders to pay close attention.
Curious to know what these signs are and why you shouldn’t miss them? Keep reading to uncover the secrets Roman reveals.
Weekly chart reveals bullish divergence
Roman’s analysis focuses on the 1-week Bitcoin chart, where each candle represents one week of price action. He points out that with the recent weekly close, Bitcoin established a third bullish divergence between its price and the Relative Strength Index (RSI). This divergence occurs when price makes lower lows while the RSI makes higher lows, suggesting weakening selling pressure and a potential upward reversal.
Volume trends indicate decreasing selling interest
In addition to the bullish divergence, Roman notes a significant observation in Bitcoin Price Action: Volume. It explains that recent downward or sideways price movement has been accompanied by a decrease in volume. In a bullish context, this indicates that selling interest is waning. Since fewer participants are willing to sell at lower prices, this sets the stage for buyers to step in and push the price higher.
Bollinger Bands Signal Imminent Breakout
Roman also highlights the behavior of Bollinger Bands on the Bitcoin chart. Currently, the bands are squeezing together, meaning they are contracting and moving closer together. This squeeze indicates a period of low volatility and often precedes a breakout, signaling an imminent increase in volatility. Traders watch these squeezes as they can lead to significant price movements, providing potential trading opportunities.
An optimistic continuation in sight?
Combining these factors – three bullish divergences, decreasing volume and a compression of the Bollinger Bands – Roman’s analysis suggests that Bitcoin is poised for a continuation of the uptrend. Traders and investors should pay attention to these signals as Bitcoin could be ready for a significant upward move.
Read too: See how much the price of Bitcoin could rise in July, according to top analysts
Do you think Bitcoin is over? Think again. This analysis might change your mind.