Bitcoin’s Bullish Divergence Signals Potential Rally Towards $90,000
- Bitcoin (BTC) is exhibiting a rare bullish divergence, indicating potential upward momentum despite falling prices.
- The weekly relative strength index (RSI) for BTC is currently above 34, recovering from an oversold threshold of below 30.
- Historically, the last bullish divergence in November preceded a significant rally of approximately 715% from $15,500 to nearly $126,200.
- Bitcoin is currently near its critical support level at the 200-week SMA around $62,000, which has previously marked market bottoms.
- Analyst Michael van de Poppë suggests that breaking above the $64,000-65,000 range could lead BTC towards targets between $71,500 and $79,000.
The current setup highlights Bitcoin’s resilience as it approaches historical support levels while showing signs of improving momentum. A confirmed bullish divergence could signal a shift in market sentiment and potential recovery.
If Bitcoin confirms this divergence and breaks through key resistance levels around $64,000-65,000, it may target highs near $90,000 based on previous patterns observed during similar market conditions.
