Bitcoin Price Analysis: Hidden Bullish Divergence Signals Potential Rebound
Bitcoin is on the verge of closing the monthly trade on a bearish note, which could impact the ongoing rally. The technical indicators have shifted towards a bearish outlook, with a significant decline in trading activity further supporting this view. Despite these challenges, Bitcoin is showing a major hidden bullish divergence, indicating a potential rebound in the near future. As a result, every dip in the BTC price may present a lucrative buying opportunity, as the digital asset is poised to break above the key resistance level at $90,000 soon.
Market Sentiment and Trading Activity
The failure to maintain crucial support levels has triggered a wave of bearish sentiment in the market. Additionally, the inability of the bulls to push the price above the ascending resistance line has reinforced the bearish narrative. However, traders remain optimistic about Bitcoin’s future, as evidenced by their continued accumulation of the digital asset despite prevailing market conditions.
Long-Term Holder Supply
An analysis of the long-term holder supply chart reveals a rebound in accumulation, indicating growing optimism among traders. This trend also points towards a potential supply squeeze in the future, as more investors hold onto their Bitcoin holdings. With significant upward pressure on the BTC price in the short term, further accumulation is expected in the coming days.
Technical Analysis and Price Outlook
The BTC price recently fell below the 200-day moving average and breached the ascending trend line established since September 2024. Decreasing trading volume has also contributed to a bearish shift in the technical indicators. Both the bull market support band (BMSB) and the Moving Average Convergence Divergence (MACD) are on track for a bearish crossover. As a result, Bitcoin’s price may test local support near $81,000, with a potential rise above $83,000 if bullish momentum prevails. However, a drop below $77,000 appears increasingly likely if the bears maintain control.