Analysis: Bitcoin's weekly chart shows rare bullish divergence, price could return to $90,000

Odaily Planet Daily: A rare "weekly bullish divergence" has appeared on Bitcoin's (BTC) weekly chart, a technical signal that has only occurred twice in history. Previously, this signal after the FTX collapse foreshadowed a 715% surge in BTC. This divergence indicates that although the price is still falling, momentum indicators are starting to recover, suggesting that selling pressure may be weakening. Analysis points out:

1. BTC's weekly chart shows a rare bullish divergence, with a potential target around $90,000.

2. The current price is holding near the 200-week moving average (approximately $62,000). Historically, this level has repeatedly marked the bottom of bear markets (2015, 2018, 2020).

3. The last weekly divergence occurred after the FTX collapse in 2022, after which Bitcoin surged from about $15,500 to $126,200, representing a 715% increase.

Technical analysis shows that BTC's weekly RSI has formed a higher low while recovering from oversold territory, even as the price continues to decline, constituting a bullish divergence signal. Analysts point out that if BTC breaks through the $64,000-$65,000 range, it could first target $71,500-$73,000, and might potentially reach the CME gap at $79,000. The area around the 50-week moving average, approximately $91,755, is seen as the next potential resistance level, while the zone above $90,000 also serves as a long-term resistance area.

Despite the bullish signal, Bitcoin remains in a weekly bear flag decline phase. If it breaks below the downward channel, the price could fall back to around $50,000 in the short term, unless it reclaims the lower boundary of the channel to form support. Overall, BTC is at a critical technical juncture with both bullish and bearish factors at play. Investors should monitor the dynamics of the 200-week moving average support and the 50-week moving average resistance. (Cointelegraph)