• Bitcoin (BTC) is showing signs of strength on the daily and weekly charts, according to crypto strategist Credible Crypto.
• He notes that the relative strength index (RSI) is flashing a classic bullish divergence on the daily chart and a hidden bullish divergence on the weekly chart.
• These indicators are typically seen as reversal or trend continuation signals, prompting calls for BTC prices to reach $20,000, $12,000 and $10,000.
Bitcoin Bears Asking To Be ‘Obliterated’
A closely followed crypto analyst is issuing a warning to Bitcoin (BTC) bears that the crypto king is showing signs of strength on the daily and weekly charts. Pseudonymous analyst Credible Crypto tells his 346,000 followers on the social media platform X that Bitcoin’s relative strength index (RSI) is flashing a classic bullish divergence on the daily chart while showing a hidden bullish divergence on the weekly chart. In technical analysis, a classic bullish divergence is typically seen as a reversal signal while a hidden bullish divergence is a sign of trend continuation. Calls for $20,000, $12,000 and $10,000 are pouring in despite no actual break in the bullish market structure to signal any sort of shift in momentum (first break is at $24,800). Bears are asking to be absolutely obliterated here.
Classic & Hidden Bullish Divergences
Credible Crypto also says that so far this year, Bitcoin has been consolidating for quite some time at the lows before igniting a steep surge. “It doesn’t look like much now,” he said,” but in an impulsive/trending environment, things can escalate quickly.” A classic bullish divergence appears when price makes higher lows whereas an indicator such as RSI makes lower lows – signaling underlying buying pressure with each successive dip. A hidden bearish divergence appears when price makes higher highs while an indicator such as RSI makes lower highs – indicating weakening momentum behind each successive peak.
Largest Liquidation Event Since December 2021
Credible Crypto notes that Bitcoin had its largest liquidation event since December 2021 – nearly two years ago – twice as large as FTX’s collapse earlier this year; That suggests confidence in BTC’s future growth potential even after experiencing short-term volatility from major market events like FTX’s crash.
Bitcoin Dominance Backtesting Bullish Breakout
The analyst adds that BTC dominance has been backtesting what could be considered an important long-term breakout level: It has been trading within two-year range between 55% and 67%, with recent activity pushing it closer to 67%. This suggests more investors favor BTC than other major cryptocurrencies based on their trading activities over time – further bolstering Bitcoin’s position as one of today’s leading digital assets and top investment choices among retail traders and institutional investors alike.
Current Price Action
At time of writing, Bitcoin is worth $26 024 USD – up from its August 27th low close at around 25 500 USD per coin – suggesting current investor sentiment remains largely optimistic about BTC’s overall prospects going forward despite ongoing bearish pressures from external sources such as macroeconomic conditions or global regulatory uncertainty surrounding crypto markets in general