Bitcoin has fallen into a bearish pattern of large bullish moves that are almost immediately followed by a rejection, leaving large wicks on the BTC candlestick chart and typically obscuring the direction in which it is moving in the short term.
Yesterday Bitcoin broadened this pattern after experiencing a temporary surge to popular highs of nearly $ 7,500 on popular trading platforms like BitMEX – and this move back almost instantly to where it started.
Despite this bearish move, analysts are finding that the bull trend may not be over yet, as a historically accurate technical factor signals that Bitcoin could soon see the much needed upward move.
Bitcoin is stuck at $ 7,200 after a short move
At the time of writing, Bitcoin is trading at $ 7,241, marking a significant drop from its daily highs of $ 7,500 reached during yesterday’s short upward move.
BTC has found adequate support around $ 7,200 in the past few days, although it is unclear how long this support will last – bears continue to have an advantage over bulls.
Scott Melker – a popular crypto analyst named “The Wolf of All Streets” – has looked at Bitcoin’s daily chart and believes: the bull’s divergence could mean current lows will mark a medium-term low for cryptocurrency number 1 ,
“I bought Bitcoin again. We now have a potential bull div on the DAILY chart (call me in 22 hours) and lower timeframes. Also the price, which was just below the previous swing and hit a little – bullish SFP? “
The bullish sentiment Melker speaks of is compounded by the fact that Bitcoin also expresses similar bullish price variations in shorter periods, including the 4-hour chart.
“We now also have a confirmed 4-hour bull division. I love to see lower timeframe divs that are confirmed on higher timeframes. Next day every day? It is possible, ”said Melker.
The upward trend that can currently be observed in several time slots could provide the Bitcoin bulls with much-needed relief in the short term – although this possibility will only be confirmed if the cryptocurrency is able to provide upward momentum.