Bitcoin Flashing Bullish Reversal Signal Amid Waning Sell-Pressure, According to Crypto Strategist
A crypto strategist known for accurately calling Bitcoin’s pre-halving correction last year says BTC may abruptly end its correction if a technical setup plays out.
Pseudonymous analyst Rekt Capital tells his 542,500 followers on the social media platform X that Bitcoin’s relative strength index (RSI) indicator is flashing a bullish divergence on the daily chart.
A bullish divergence on the RSI is typically viewed as a reversal signal as it indicates that buying momentum is increasing even if an asset’s price trades lower or sideways.
“Promising early-stage signs of a Bullish Divergence developing
Reclaiming the previous lows of $84,000 could set the price up to further build out this Bull Div.”
The trader says BTC is flashing the bullish reversal signal just as Bitcoin shows signs of seller exhaustion.
“The seller volume has continued to decline over the past few days
It has declined to the point where sellers are now producing below-average volume whenever they try to take control of the market
This has opened up the opportunity for buyers to start stepping in a bit more.”
Rekt also notes that Bitcoin’s resistance at around $84,000 appears to be on the verge of crumbling after being tested multiple times over the last few days.
“The signs for a weakening resistance were there.
Now price needs to confirm that this resistance is sufficiently weak to soon become a support.
Bitcoin is one Daily Close above this level from moving further to the upside.”
At time of writing, Bitcoin is trading for $83,150.
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Author: Henry Kanapi
