Bitcoin bulls are feeling optimistic once again as a prominent crypto trading analyst, Roman, has identified several technical signals pointing towards a bullish continuation for Bitcoin. In his latest analysis, Roman highlights key indicators on the 1-week Bitcoin chart that suggest a potential uptrend, urging cryptocurrency traders to take notice.
Roman points out that with the recent weekly close, Bitcoin has established a third bullish divergence between its price and the Relative Strength Index (RSI). This divergence occurs when the price makes lower lows while the RSI makes higher lows, indicating weakening selling pressure and a potential upward reversal.
In addition to the bullish divergence, Roman notes a significant observation in Bitcoin’s price action: the volume. He explains that the recent price movement down or sideways has been accompanied by decreasing volume, signaling diminishing selling interest. This sets the stage for buyers to step in and drive the price up.
Roman also highlights the behavior of Bollinger Bands on the Bitcoin chart, noting that they are currently squeezing, indicating a period of low volatility that often precedes a breakout and an increase in volatility. Traders watch for these squeezes as they can lead to significant price movements and potential trading opportunities.
Combining these factors, Roman’s analysis suggests that Bitcoin is potentially poised for an uptrend continuation. Traders and investors are advised to closely monitor these signals as Bitcoin could be gearing up for a significant move upwards. This analysis may change the minds of those who think Bitcoin’s price surge is over.