- The price of Bitcoin has fallen by more than 2% in the last seven days.
- Market indicators looked bullish but selling pressure remained high.
Bitcoin [BTC] has remained somewhat inactive over the past few days as it continues to remain below the $42,000 mark. Even though this looked worrying for investors, a bullish divergence can be seen in the coin's price chart.
A bullish divergence is visible on the Bitcoin chart!
Bitcoin investors suffered losses last week as the price of the king of crypto fell more than 2% in the last seven days. Accordingly CoinMarketCapAt the time of writing, BTC was trading at $41,592.53 and had a market cap of over $815 billion.
Meanwhile, a key BTC market indicator pointed to a bullish divergence. Trader Tradingrade, a popular crypto analyst, posted a tweet on January 19 highlighting the same.
According to the tweet, BTC's daily high-low chart indicated a hidden bullish divergence in the Relative Strength Index (RSI) that has been forming since December 2023.
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A hidden bullish divergence has formed in the RSI on #Bitcoin's daily high-low chart since December 2023.
This could indicate that there is a higher chance of the uptrend continuing soon. 🚀 pic.twitter.com/jPWGXO8X5J
– Trader Tardigrade (@TATrader_Alan) January 18, 2024
The analyst also mentioned that this suggests that there is a higher probability of a price uptrend in the early stages.
Therefore, AMBCrypto examined Bitcoin’s daily chart to find more such bullish divergences. Our analysis revealed that a similar trend was also observed in the coin’s Chaikin Money Flow (CMF), which also provided a bullish signal.
Additionally, BTCThe price was close to the lower boundary of the Bollinger Bands, which could lead to a trend reversal. However, not everything was in its favor as the MACD showed a clear bearish upper hand in the market.
Source: TradingView
Is an uptrend inevitable?
In order to better understand whether BTC a bull rally would begin, we took a look at the on-chain metrics. Although market indicators were bullish, a look at BTC's on-chain metrics suggested that the possibility of a short-term uptrend is slim.
CryptoQuants Data noted that net deposits of BTC on exchanges were high compared to the last seven-day average.
Its aSORP was red, meaning more investors were selling at a profit. In the middle of a bull market, this can indicate a market top. Additionally, the binary CDD suggested that long-term holders’ movements over the past seven days were above average.
Source: CryptoQuant
To read Bitcoins [BTC] Price prediction 2024-25
Further concerns emerged when we checked the market sentiment surrounding the king of cryptos. Our analysis showed that both the Coinbase premium and the Korea premium were in red.
This clearly showed that selling sentiment around BTC was prevalent among both US and Korean investors.
Source: CryptoQuant
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