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.
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