Analysis: Bitcoin Weekly Chart Shows Rare Bullish Divergence, Price Could Return to $90,000

Odaily Planet Daily News Bitcoin (BTC) has shown a "weekly bullish divergence" on its weekly chart for only the second time in history. This technical signal once predicted a 715% surge in BTC after the FTX collapse. This divergence indicates that while the price is still falling, momentum indicators are beginning to recover, suggesting selling pressure may be weakening. Analysis points out:

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

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

3. The last weekly divergence occurred after the FTX collapse in 2022, following which Bitcoin rose from approximately $15,500 to $126,200, a gain of 715%.

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

Despite the bullish signal, Bitcoin is still in a phase of declining within a weekly bear flag. 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 trendline to form support. Overall, BTC is at a key technical juncture with both bullish and bearish factors coexisting. Investors need to monitor the dynamic changes at the 200-week moving average support and the 50-week moving average resistance. (Cointelegraph)