Table of Contents
Bitcoin has been playing out exactly as we predicted in our previous analysis Bitcoin Rally Far From Over. Price To $57k Soon! Watch This Support.
In that analysis, we talked about the $42,517 support and how it could play a major role in the coming days for Bitcoin. Well, that support level served its purpose, pushing Bitcoin 5% higher in just a matter of hours!
However, this rally caused a massive divergence to form between the price and the bullish volume. This means that while the price was rising higher, the bullish volume was declining.
This volume decline caused a divergence between price and the MACD indicator, a very clear sign of weakness in the Bitcoin price and potential for us to see a sell-off soon!
To trade Bitcoin with leverage, sign-up to Bybit right now! You can also get up to $1,610 in deposit bonus when you sign-up and fund your Bybit account with our Bybit link.
What Does This Mean For Bitcoin?
We can already see the Bitcoin price sell-off in the 15 minutes timeframe. However, if this $42,411 support level holds, we can expect to see the Bitcoin rally continue to head higher despite the divergence between price and bullish volume.
This rally could push the Bitcoin price into the $50k price regions in no time. But for that to happen, the $42,411 support must hold.
For us to become bearish, the Bitcoin price needs to break through and close below the $42,411 support. Only then can we can fully confirm that the Bitcoin sell-off has started.
Final Verdict!
Despite the current bullish divergence playing out on the Bitcoin 4-hour timeframe, we are still very bullish on the Bitcoin price and believe there is a high probability for Bitcoin to continue heading higher in the coming days.
However, for our bullish bias to remain valid, the Bitcoin price must respect the $42,411 support on the 15 minutes timeframe. As far as this support holds, Bitcoin is bullish.
Easy Steps From Beginner To Pro Crypto Trader
You can speed up your learning journey by reading our How To Trade Bitcoin Guide. This guide is the best for crypto traders who wants to get familiar with the basics of Bitcoin trading. You can also check out our top list of Best Bitcoin Exchanges To Trade With.
PrimeXBT Covesting: Trade Hassel Free
Sign-up on PrimeXBT today to trade Bitcoin hassle-free. You can copy experienced traders and access hundreds of different strategies on the platform! Don’t forget to claim your 25% bonus by using the promo code “bitcoinsensus50” when you sign-up with our link PrimeXBT Covesting
