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Bitcoin targets $90,000 on long-term bullish signals
Bitcoin (BTC) is preparing for a new price breakout, as indicated by two classics technical indicatorsaccording to a recent analysis shared by popular trader Roman on X (formerly Twitter).
Despite the predominance bearish sentiments, Bitcoin consolidated above $63,000 after facing resistance at the $70,000 mark. This period of consolidation, although disappointing for holders in June, is considered a healthy correction in a context of bull market.
Key Indicators: RSI and Bollinger Bands
Roman highlights the importance of relative strength index (RSI) and Bollinger Bands on the weekly chart, which signals upside potential. The RSI, a momentum oscillator, measures the speed and direction of price movements and is often used to identify overbought or oversold conditions.
Bollinger bands, including a middle band (simple moving average) and two outer bands (standard deviations from the mean) are used to identify volatility and potential price breakouts.
Graphical analysis reveals a third bullish divergence between the price of Bitcoin and the RSI. This divergence is illustrated by lower RSI lows that do not correspond to lower price lows, indicating weakening bearish momentum. This trend constitutes a strong bullish signal, often preceding significant price increases.
Additionally, Bollinger bands are narrowing, signaling reduced volatility. This “squeeze” often precedes significant price movements. With the RSI showing a bullish divergence, the bias is towards a bullish breakout.
Roman’s analysis suggests that Bitcoin’s recent consolidation is part of a healthy correction within a broader bull market. RSI divergence and tightening Bollinger bands both indicate substantial price action.
Roman projects a goal of $90,000, a significant increase from current levels. Traders and investors it is advisable to watch the weekly close for further confirmation of the bullish continuation.
Bitcoin Price Analysis
7-day Bitcoin price chart. Source: Finbold
Bitcoin is currently trading at $64,040, reflecting a 0.34% decline over the past 24 hours and a 3% decline over the past week, accumulating a 6% loss on its monthly chart. Interestingly, according to QCP Capital, Bitcoin Price Consolidation Expected to Continue Over the Next Two Monthswith a potential increase not expected until the end of 2024.
Monitoring long-term signals is crucial, as Bitcoin’s consolidation phase may soon give way to explosive growth, aiming for new highs beyond current levels.
With key technical indicators such as the RSI showing bullish divergence and tightening Bollinger Bands, the groundwork is being laid for significant price movement.
Although a possible rise is not expected before the end of 2024, traders and investors should remain vigilant as these signs suggest that Bitcoin is preparing for a major breakthrough.
Disclaimer: The content of this site should not be considered investment advice. The investment is speculative. When you invest, your capital is at risk.