Bitcoin has broken through the $115,000 barrier after spending a couple of weeks below it. It’s now holding strong above $114,000, showing renewed bullish momentum.
Hidden Bullish Divergence
Technical analysis reveals a hidden bullish divergence. This pattern suggests Bitcoin is poised for a significant price increase. A chart shows Bitcoin forming a higher low (price) compared to June, while the Relative Strength Index (RSI) shows a lower low (momentum). This mismatch is the key to the hidden bullish divergence. The chart also shows Bitcoin holding a crucial support level around $114,000 and is now showing two consecutive bullish weekly candles. If this divergence plays out as expected, it could signal a push to new all-time highs. Currently, Bitcoin is only about 5.7% below its all-time high of $124,128.
Stochastic RSI Turns Bullish
The weekly Stochastic RSI indicator has just flipped bullish. A similar bullish flip in April preceded a seven-week run of bullish closes. A similar pattern now could mean at least five more bullish weeks.
Macroeconomic Factors to Watch
Upcoming macroeconomic events, especially the Federal Open Market Committee (FOMC) meeting, could impact Bitcoin’s price. An expected interest rate cut (possibly 25 or even 50 basis points) could influence investor sentiment, potentially boosting Bitcoin and other major cryptocurrencies. Currently, Bitcoin is up 9% from its September opening, already showing bullish continuation.
