- The price of Bitcoin has fallen by more than 2% in the past seven days.
- Market indicators appeared optimistic, but selling pressure remained high.
Bitcoin [BTC] has remained somewhat inactive in recent days as it remained below the $42,000 mark. While this looked worrying to investors, a bullish divergence has emerged on the coin’s price chart.
Bullish Divergence Spotted on Bitcoin’s Chart!
Bitcoin investors suffered losses last week as the price of the king of cryptos fell by more than 2% in the past seven days. According to CoinMarketCapAt the time of writing, BTC was trading at $41,592.53 with a market cap of over $815 billion.
Meanwhile, a key BTC market indicator signaled a bullish divergence. Trader Tradingrade, a popular crypto analyst, posted a tweet on January 19 highlighting the same.
According to the tweet, BTC’s daily high-low chart marked a hidden bullish divergence in the Relative Strength Index (RSI) that has formed since December 2023.
On #Bitcoin daily high-low chart, Hidden Bullish Divergence in RSI is formed since December 2023.
This may indicate a greater possibility of continuation of the uptrend early on.pic.twitter.com/jPWGXO8X5J
— Trader Tardigrade (@TATrader_Alan) January 18, 2024
The analyst also said this would indicate a higher chance of a price increase in the early period.
Therefore, AMBCrypto examined Bitcoin’s daily chart to find other such bullish divergences. Our analysis showed that a similar trend was also observed in the coin’s Chaikin Money Flow (CMF), which was also a bullish signal.
Additionally, BTCThe company’s price was close to the lower limit of the Bollinger bands, which could cause a trend reversal. However, not everything was in favor as the MACD showed a clear bearish upper hand on the market.
Source: TradingView
Is an upward trend inevitable?
To better understand whether BTC a bull rally would begin, we looked at the on-chain metrics. While market indicators were bullish, a look at BTC’s on-chain metrics suggested that the possibility of an uptrend in the short term was slim.
CryptoQuant’s facts pointed out that the net deposit of BTC on the exchanges was high compared to the average of the past seven days.
The aSORP was red, meaning more investors were selling at a profit. In the middle of a bull market, this could indicate a market top. Furthermore, the binary CDD suggested that long-term holders’ moves over the past seven days were higher than the average.
Source: CryptoQuant
Read Bitcoins [BTC] Price prediction 2024-25
More concerns came to light when we checked the market sentiment surrounding the king of cryptos. Our analysis showed that both the Coinbase premium and the Korea premium were red.
This clearly indicated that selling sentiment around BTC was dominant among both US and Korean investors.
Source: CryptoQuant
