Bitcoin aims for 90000 based on bullish signals on longer time frames
Bitcoin (BTC) is gearing up for a major price breakout, according to a recent analysis by popular trader Roman on X (formerly Twitter). Despite prevailing bearish sentiments, Bitcoin has been consolidating above $63,000 after facing resistance at the $70,000 mark. This period of consolidation is seen as a healthy correction within an ongoing bull market.
Roman emphasizes the significance of two key technical indicators, the Relative Strength Index (RSI) and Bollinger Bands, on the weekly chart. The RSI measures the speed and change of price movements and is often used to identify overbought or oversold conditions. The Bollinger Bands, which consist of a middle band and two outer bands, are used to identify volatility and potential price breakouts.
The chart analysis reveals a bullish divergence between Bitcoin’s price and the RSI, indicating weakening bearish momentum. This pattern often precedes significant price increases. Additionally, the Bollinger Bands are narrowing, signaling reduced volatility. This often precedes major price movements. With the RSI showing bullish divergence, the bias is towards an upward breakout.
Roman’s analysis suggests that Bitcoin’s recent consolidation is part of a healthy correction within a larger bull market. The RSI divergence and the tightening of Bollinger Bands both indicate a substantial price move. Roman predicts a target of $90,000, a significant increase from current levels. Traders and investors are advised to monitor the weekly close for further confirmation of the bullish continuation.
Bitcoin is currently trading at $64,040, reflecting a 0.34% decline in the last 24 hours and a 3% drop over the past week. According to QCP Capital, Bitcoin’s price consolidation is expected to continue for the next two months, with a potential bull run not expected until late 2024. However, the bullish divergence shown by key technical indicators suggests that Bitcoin is preparing for a major breakout. Traders and investors should stay vigilant as explosive growth and new highs beyond current levels may be on the horizon.