Even with recent drops, Bitcoin charts show that technical divergence may mean a potential turnaround for BTC prices.
A successful move upwards will be supported by prices above $103,398 and resisted by $104,896.
These divergences hint that buyers could have stronger demand and the price could keep moving up.
Bitcoin has been making interesting technical patterns in recent sessions, with the potential for a bullish divergence. Market technicians are looking for significant signals on the price chart and RSI (Relative Strength Index) that may represent a shift in momentum.
As of the latest updates, Bitcoin's current price stands at $104,334, a moderate increase of 0.6%. Technicals and prior comparisons indicate that despite recent price drops, underlying momentum may be turning.
Technical Indicators Point Toward Reversal
The chart analysis exhibits two types of bullish divergence called standard and hidden. On the price chart, the price hits a new lower low, but the RSI reaches a new higher low at the same level. Usually, a bullish divergence at the bottom of the price chart indicates that the downtrend could be slowing, making a reversal likely. It was observed by analysts that the divergence happened following a decrease in the early trading price of Bitcoin.
https://twitter.com/misterrcrypto/status/1929065626817147131
The second pattern appears when the price makes a higher low and the RSI has a lower low. Normally, this setup continues the recent advance, showing that bulls could be ready for a stronger rise. The evidence of this hidden divergence suggests that this pullback might not last long.
Support and Resistance Levels Remain Key Focus
Market participants are closely monitoring Bitcoin’s key levels. The immediate support level is identified at $103,398, while resistance stands at $104,896. These levels are critical in determining Bitcoin’s next price direction. Should the price hold above the support level and break through resistance, it could validate the bullish divergence signals and support further upside movement.
Besides, the price range in the last 24 hours has been mostly steady, moving between the set support and resistance levels. If consolidation continues, along with divergence, this may trigger more significant price movements soon.
Broader Implications for Traders
Regardless of whether divergence happens, it’s a popular way for traders to consider shifts in the market. The past and current technology behind Bitcoin serves as a case study on how wide misalignments can trend reversals. If traders see the usual signs, they may interpret these movements as signals to prepare for the market heading up.
Yet, market analysts point out that divergence should be seen in the context of the overall market situation. The behavior of investors, market institutions and major economic trends have a big impact on how prices move. Now, the bullish divergence on the Bitcoin chart still signals a potential influence on trading over the short term.
