The Bitcoin Price Holds Above $25,700 Support Despite Bearish Trend
The Bitcoin (BTC) price has been staying slightly above the $25,700 horizontal support zone for about a month now. Although the price action appears bearish, there is a bullish signal coming from the Relative Strength Index (RSI), which has previously resulted in a 100% price increase.
Bitcoin Consolidates Near $26,000 Despite Bullish Divergence
When analyzing the daily timeframe, there are mixed signals due to conflicting readings from the price action and the RSI. BTC has been following a descending resistance line since reaching its yearly high of $31,800 on July 13. Despite multiple bounces, the price has not been able to break above this resistance line. Currently, BTC hovers above the $25,700 support level.
However, the RSI is showing bullish signs. Although it is still below 50, it has been increasing since August 18. The RSI has also generated a significant bullish divergence, indicating a potential reversal in the trend.
BTC Price Prediction: What Does History Say About This Bullish Divergence?
The bullish divergence on the daily timeframe is noteworthy because it has moved outside of the RSI oversold territory. In the past year, the RSI has only moved outside of oversold territory three times, and a bullish divergence in that territory has occurred only once, resulting in a 100% upward movement.
If history were to repeat itself, a 100% increase could lead the BTC price to reach $52,000. However, a breakout from the resistance line is necessary to confirm a bullish trend.
Hot Take: Bitcoin’s Future Price Depends on Resistance Line Breakout
The Bitcoin price has been holding above the $25,700 support level despite a bearish trend. The RSI is showing bullish signs with an increasing trend and a significant bullish divergence. This indicates a potential trend reversal and the possibility of a 100% price increase, leading Bitcoin to $52,000.
However, for the trend to truly turn bullish, a breakout from the descending resistance line is needed. If the price breaks below the $25,700 support level, it may indicate further downside with a potential drop to the 0.5 Fib retracement support level at $23,600.
By
By
By
By
By