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Bitcoin is currently floating in a Tightly compressed price Reach after failure several times to break above $ 110,000 earlier this month. The last few days have been characterized by the leading cryptocurrency that acts around $ 105,000, with neither bull nor bears taking control. Despite the overall consolidation, A Subtle but important signal Starts to flash below the surface, especially on the 4-hour graph, which Bitcoin can soon send to a new of all time.
Return of rare divergence pattern on the 4H graph of Bitcoin
Crypto analyst Luca (@Cryptictrades_) went to social media platform X To share a graph that emphasizes an important technical development on the 4 -hour period of Bitcoin: the return of a bullish divergence. This signal, which appeared earlier at the beginning of April, preceded the enormous meeting that Bitcoin catapulted at its high on 22 May of $ 111,800. The same divergence is again and another bitcoin price Breakout can be very close.
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As shown in the 4-hour candle-time frame graph below, the divergence is clearly illustrated between price action and the Relative Strength Index (RSI). The price is lower lows, while the RSI has printed higher lows. This mismatch serves as an early indicator that the selling of Momentum fades and could follow a reversal to the benefit. The previous copy of this pattern preceded a competitive movement of a low of $ 74,000 at the beginning of April to more than $ 111,000 in just a few weeks.
What does this divergence mean for the price of Bitcoin?
Bullish differences in the middle of time in time, such as the 4-hour, the reputation has the first reversal signals when it is supported by an increasing volume. In the current case of Bitcoin, the appearance of this pattern can again mean that the recent Retracement of $ 111,800 has carried out his course. With RSI now trending up, even if the price presses slightly lower, Bitcoin can witness another hidden battery phase before the next leg is higher.
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If the pattern is faithful to his earlier performance in April, the leading cryptocurrency could be set for a new push in the direction of a new high level of all time. Bitcoin is currently not far away from a new of all time, because it is only about 5.5% away from its price peak. Based on this, a different strong outbreak could easily focus than the previous $ 111,800 high.
Although the price of Bitcoin is stagnating relatively for the time being, the presence of this bullish divergence is a reminder of how quickly things can change. The previous bullish divergence ended with a price die of 50%. A similar performance of the current price level would Translate to another goal above $ 160,000.
At the time of writing, Bitcoin acts at $ 105,700, an increase of 1.4% in the last 24 hours, which already shows signs of the bullish divergence signal that comes into action.
Featured image of Getty Images, Chart van TradingView.com