A popular crypto strategist says that an overlooked signal in Bitcoin’s longer-term chart is hinting that a new leg of the bull market will take BTC to fresh all-time highs.
The pseudonymous trader known as Credible tells his 317,000 Twitter followers that he’s looking at the three-week candles of BTC and sees a divergence between price action and momentum indicator relative strength index (RSI), suggesting that big, long-term rallies are brewing.
“Let’s do it again. As long as price continues to close above $34,000 on the [three-week] timeframe, this hidden bullish divergence is likely to play out and send us to new all-time highs (ATH). BTC.”
Even though Bitcoin’s 50% correction from $69,000 is significant, Credible says that BTC ultimately never formed a lower low, keeping its bullish market structure in the higher timeframes intact.
“Not sure how this can be bearish when the last time we were at $30,000 we rallied to new ATH, and this time we haven’t even made a lower low yet. Simple market structure.”
Zooming in on the lower timeframes, the closely tracked analyst says that out of all the likely scenarios, BTC is potentially forming a triangle bottom pattern.
Credible says we should have confirmation of a bullish reversal within the next couple of days after BTC surpasses $42,500, putting $45,000 in play as the next target.
“An update to this idea – daily demand held and if we are seeing Option 1 play out – the triangle structure may now actually already be complete. If this is the case, it will become VERY clear in the next couple days. Starting with a break of $42,500 and $45,000 shortly after.”
Bitcoin is currently exchanging hands for $40,905.
Check Price ActionDon't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Sensvector/lassedesignen
