Crypto trader and analyst Scott Melker is offering three signals indicating that Bitcoin (BTC) is likely bottoming out and could see some upside in price soon.
In a new tweet, Melker tells his 459,500 followers that the world’s flagship crypto asset is printing a candle which suggests that a market reversal may be on the horizon.
“BTC Weekly: Likely to close as an imperfect inverted hammer. Technically, a potential bullish signal when found at the bottom of a downtrend. Requires confirmation with a bullish candle the following week.”
Melker also zooms in and finds bullish signals coming from the relative strength index (RSI), which measures the momentum of price swings to determine when an asset is overbought or oversold. According to the crypto trader, the RSI is starting to show an increase in buying pressure even as price flash signs of weakness.
“BTC Daily: Confirming the bullish divergence that I mentioned yesterday, with clear elbow up on RSI. Second bullish divergence, with a hidden bear divergence in between, which is now invalidated.
Should see more upside for a bit. Seems to be ‘bottoming,’ which is a process.”
Melker also has his eye on Ethereum against Bitcoin (ETH/BTC), as he says the pair is pushing on a crucial level, implying possible rallies once broken.
“Pushing against key resistance with increasing volume on the daily [timeframe]. Get out your popcorn. Today is important.”
Bitcoin is trading at $36,872 at time of writing and is up more than 7% in the past 24 hours, according to CoinGecko. It’s down 35.6% in the past month.
Melker also argues that long-term BTC bulls shouldn’t concern themselves with Bitcoin’s day-to-day price movements.
“If you believe that BTC will one day be a six-figure asset, then you can ignore price action entirely and dollar cost average with money that you can afford to put away and not touch for years.
That how people have accumulated wealth since the beginning of markets.”
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