A Key Bullish Signal Just Flashed on the Bitcoin Charts 📈
I've been watching the charts closely, and something significant just appeared. Bitcoin has confirmed a 3-day bullish divergence.
$BTC Here's what that means in simpler terms: while the price recently made a lower low, the key momentum indicator (like the RSI) didn't follow it down. This creates a disconnect that technical analysts watch for. Essentially, it tells us that even as price dipped, the underlying selling pressure was quietly fading—the bearish momentum is exhausting itself.
It’s helpful to look at recent history. The last two times this specific 3-day structure appeared:
· The downtrend's pace noticeably slowed down.
· We saw strong buying absorption at those lower levels (where large orders soak up sell pressure).
· A significant price bottom formed not long after.
$LUNA It's crucial to remember what this signal is and isn't. Divergences don't call exact tops or predict immediate moonshots. Their primary function is to signal exhaustion in the prevailing trend. Think of it as the market catching its breath and the momentum shifting beneath the surface, which often precedes a reversal or a period of consolidation before the next major move.
This development, combined with the improving regulatory backdrop, adds an intriguing layer to the current market structure.
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