Bitcoin Displays Bullish Pre-Rally Behavior, Says Rekt Capital
Renowned crypto analyst Rekt Capital suggests that Bitcoin (BTC) is exhibiting classic pre-rally signals as technical indicators and price movements show positive signs.
Bullish Divergence Indicates Potential Reversal
Rekt Capital highlights a bullish divergence with the relative strength index (RSI), a momentum indicator. This divergence occurs when the RSI trends upward while the price either remains flat or decreases, signaling a possible upcoming price reversal. Similar divergences were observed in August 2024, August 2023, and November 2022, preceding significant uptrends in Bitcoin.
Breaking the Downward Trend
Rekt Capital points out that Bitcoin’s downward trend will be officially broken once it surpasses the lower high structure, currently around $82,000. The analyst emphasizes the importance of breaking the blue downtrend line to confirm the bullish divergence and initiate a potential price rally.
As of the latest update, Bitcoin is trading at $84,789, slightly above the blue downward trend line identified by Rekt Capital. This suggests that the anticipated price reversal may already be in progress.
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