Bitcoin BTC/USD fell to the $35,255 level on Friday before bouncing higher in tandem with the general markets, which the crypto sector has become tied to recently.
The tables may be turning for Bitcoin because the crypto has developed strong bullish divergence near oversold territory on the daily chart.
Bullish divergence occurs when a stock makes a series of lower lows over a specific timeframe, while the relative strength index (RSI) oscillator makes a series of higher lows. Divergence suggests that the bulls are regaining control and can mark an imminent reversal of a downtrend.
Divergences are best used when combined with other signals and patterns on a stock or cypto’s chart, because the existence of divergence doesn’t indicate when a possible reversal will occur.
Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.
The Bitcoin Chart: Bitcoin’s RSI reversed course on April 11, and has since made a consistent series of higher lows, while the crypto’s price has declined over 15%. Although Bitcoin’s RSI has climbed, it’s measuring in at about 36%, which indicates the crypto is near oversold territory, which also points toward a bounce being imminent.
See Also: Why Bitcoin- And Ethereum-Related Stocks Are Getting Hammered Today
Visit Benzinga’s Crypto Homepage – 1,000,000+ depend on Benzinga Crypto every month
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.