Bitcoin
Don’t miss this bullish signal!
Well, it seems to be looking Bitcoin Bulls at it again! Prominent crypto trading analyst Roman has identified several technical signs that suggest a bullish continuation for Bitcoin. In his latest analysis, published on X, Roman highlights key indicators that point to a potential uptrend, encouraging crypto traders to pay close attention.
Curious about what these signs are and why you shouldn’t miss them? Read on to uncover the secrets Roman reveals.
Weekly Chart Reveals Bullish Divergence
Roman’s analysis focuses on the 1-week Bitcoin chart, where each candle represents a week of price action. He points out that with the recent weekly close, Bitcoin has established a third bullish divergence between its price and the Relative Strength Index (RSI). This divergence occurs when the price makes lower lows while the RSI makes higher lows, suggesting a weakening of selling pressure and a potential upward reversal.
Volume trends indicate decreasing selling interest
In addition to the bullish divergence, Roman notes a significant observation in Bitcoin Price Action: Volume. It explains that recent downward or sideways price movement has been accompanied by decreasing volume. In a bullish context, this indicates that selling interest is waning. Since fewer participants are willing to sell at lower prices, this sets the stage for buyers to step in and push the price higher.
Bollinger Bands Signal Imminent Breakout
Roman also highlights the behavior of Bollinger Bands on the Bitcoin chart. Currently, the bands are squeezing, meaning they are contracting and moving closer together. This compression indicates a period of low volatility and often precedes a breakout, signaling an upcoming spike in volatility. Traders are keeping an eye out for these squeezes as they can lead to significant price movements, providing potential trading opportunities.
A bullish continuation in sight?
Combining these factors — three bullish divergences, decreasing volume, and a tightening of the Bollinger Bands — Roman’s analysis suggests that Bitcoin is poised for an uptrend continuation. Traders and investors should keep an eye on these signals as Bitcoin could be ready for a significant move higher.
Read too: See how much the price of Bitcoin could rise in July, say top analysts
Think Bitcoin is over? Think again. This analysis might change your mind.