Bitcoin’s price has been stuck in a narrow range around $105,000 lately, with neither buyers nor sellers clearly in charge. But a hidden signal might suggest a big move is on the horizon.
A Repeating Pattern
A crypto analyst, Luca (@CrypticTrades_), spotted something interesting on Bitcoin’s 4-hour chart: a bullish divergence. This is a technical pattern that previously appeared in early April, right before Bitcoin’s massive price jump to its all-time high of $111,800 in May. Now, it’s back.
This divergence shows up as a mismatch between Bitcoin’s price and its Relative Strength Index (RSI). While the price has been making lower lows, the RSI has been making higher lows. This suggests that selling pressure is weakening, and a price increase could be coming.
What Does it Mean?
Bullish divergences on shorter timeframes like the 4-hour chart are often early warnings of a price reversal, especially when trading volume increases. In Bitcoin’s case, this could mean the recent price drop from $111,800 is over. It might even indicate that Bitcoin is quietly accumulating before another big price surge.
If history repeats itself, Bitcoin could be poised for another run towards new all-time highs. It’s only about 5.5% away from its previous peak, so a strong breakout could easily push it beyond $111,800.
Potential for Huge Gains
The previous bullish divergence led to a 50% price increase. If this one follows suit, Bitcoin could easily soar above $160,000! While the price is relatively flat right now, this signal is a reminder that things can change quickly in the crypto market. Bitcoin is already showing signs of life, up 1.4% in the last 24 hours. Keep an eye on this!
