Well, it seems to be looking up for Bitcoin bulls again! A prominent crypto trading analyst, Roman, has identified several technical signals suggesting a bullish continuation for Bitcoin. In his latest analysis, posted on X, Roman highlights key indicators that point to a potential uptrend, encouraging cryptocurrency traders to pay close attention.
Curious to know what these signals are and why you shouldn’t miss them? Read on to unlock the secrets Roman reveals.
Weekly Chart Reveals Bullish Divergence
Roman’s analysis focuses on the 1-week Bitcoin chart, where each candlestick represents one week of price action. He points out that with the recent weekly close, Bitcoin has established a third bullish divergence between its price and the Relative Strength Index (RSI). This divergence occurs when the price makes lower lows while the RSI makes higher lows, suggesting weakening selling pressure and a potential upward reversal.
Volume Trends Indicate Diminishing Selling Interest
In addition to the bullish divergence, Roman notes a significant observation in Bitcoin’s price action: the volume. He explains that the recent price movement down or sideways has been accompanied by decreasing volume. In a bullish context, this indicates that selling interest is diminishing. As fewer participants are willing to sell at lower prices, it sets the stage for buyers to step in and drive the price up.
Bollinger Bands Signal Impending Breakout
Roman also highlights the behavior of Bollinger Bands on the Bitcoin chart. Currently, the bands are squeezing, meaning they are contracting and moving closer together. This squeeze indicates a period of low volatility and often precedes a breakout, signaling an upcoming increase in volatility. Traders watch for such squeezes as they can lead to significant price movements, providing potential trading opportunities.
A Bullish Continuation in Sight?
Combining these factors—three bullish divergences, decreasing volume, and a Bollinger Bands squeeze—Roman’s analysis suggests that Bitcoin is poised for an uptrend continuation. Traders and investors should keep a close eye on these signals as Bitcoin could be set for a significant move upwards.
Also Read: Here’s How Much Bitcoin Price Can Surge In July, Top Analysts Weigh In
Think Bitcoin’s done? Think again. This analysis might change your mind.
