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What to Expect When Bitcoin Shows Bullish Divergence on the Chart?

the Bitcoin-Price has recovered slightly on its chart. Although the coin has been consolidating over the past few weeks, BTC has attempted to make an upward move. In the last 24 hours, the coin has seen a 0.6% increase in value.

Looking at the weekly progress, BTC is stuck between two price levels of $16,400 and $16,900 respectively. Going by the technical outlook, the coin has portrayed positive sentiments, with buyers slowly returning to the market.

A bullish pattern was also forming on the daily chart, meaning that the price could see a recovery in the coming trading sessions. The accumulation showed up on the chart, which meant that the coin saw demand over the past trading sessions.

BTC has also formed a double bottom pattern, a chart pattern that resonates with an upcoming major move for the king coin. Bitcoin is currently trading 76% below its all-time high, which was backed up in the past year. the market capitalization BTC also saw an increase, indicating the building of bullish strength.

What to Expect When Bitcoin Shows Bullish Divergence on the Chart?, Crypto Trading News

Bitcoin Price Analysis: One-Day Chart

What to Expect When Bitcoin Shows Bullish Divergence on the Chart?, Crypto Trading NewsBitcoin was valued at $16,800 on the one-day chart | Source: BTCUSD on TradingView

BTC was trading at $16,800 at the time of writing. The coin surpassed the $16,800 mark as demand increased. the overheadResistance for bitcoin was $17,000. The double bottom formed by Bitcoin could cause this coin to recover and move above $17,000.

On the other hand, if Bitcoin slips from its current price level, then the support zone for the coin is $16,400. A drop from $16,400 will push the price to $16,100. The amount of BTC traded in the last session was green, which meant that the coin entered a bullish zone.

Technical Analysis

What to Expect When Bitcoin Shows Bullish Divergence on the Chart?, Crypto Trading NewsBitcoin showed a bullish divergence on the one-day chart | Source: BTCUSD on TradingView

Bitcoin demand has increased over the past few trading sessions. The Relative Strength index (RSI) moved closer to and touched the half-line, which saw an increase in buyers. The RSI was also forming a bullish divergence (white), which is a sign of positive price action.

Similarly, bitcoin price moved above the 20-Simple Moving Average line, which meant the buyers were driving the price movements in the market. A move above the 50-SMA will ensure BTC price trades above the $17,400 level.

What to Expect When Bitcoin Shows Bullish Divergence on the Chart?, Crypto Trading NewsBitcoin saw increased capital inflows on the one-day chart | Source: BTCUSD on TradingView

Regarding the upside, other technical indicators have also sided with the incoming upside. Chaikin Money Flow (CMF), which shows capital inflows and outflows at a given point in time, saw positive movement.

CMF was positive and above the half line, showing an increase in capital inflows. The Moving Average Convergence Divergence (MACD) is responsible for reading price momentum and its reversals. MACD showed green histograms, which are buy signals for the ware coin. This meant that Bitcoin could expect the price to increase.

Related reading: Ethereum Stakers suffering massive losses as 80% of ETH staked is in the red

Featured image by UnSplash, charts by TradingView.com

Source: Crypto News Deutsch

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