After nosediving below the psychological price of $40K over the weekend, Bitcoin is back to winning ways.
The leading cryptocurrency was up by 5.66% in the last 24 hours to hit $40,611 during intraday trading, according to CoinMarketCap.
Market analyst Michael van de Poppe pointed out:
“Great bullish divergence on Bitcoin and bouncing from higher timeframes level here. Looks ready for bullish continuation.”
Source : TradingView
Crypto trader Ali Martinez shared similar sentiments and stated:
“The TD Sequential presents a buy signal on the 12-hour chart while BTC forms a bullish divergence against the RSI. The bullish signals come at a critical area of support. If $38,530 continues to hold BTC may have a good chance of rebounding to $43,700.”
Source: TradingView
Bullish divergence happens when prices drop to a new low, but the same is not observed with an oscillator. Therefore, it signals that bears’ power is fading and bulls are ready to take over the market again.
Is $43,000 next?
Elon Musk’s acquisition of social media giant Twitter has reignited prices in the crypto market because Bitcoin currently sits at a significant support zone, following a bullish momentum.
Having breached the $40K price level, the leading cryptocurrency needs to hold this area to boost its upward push.
Crypto analyst Rekt Capital explained:
“BTC is still holding the 2022 Higher Low as support (green) Continued support here & BTC will revisit $43100 resistance.”
Source: TradingView
The $40,900 zone has also acted as the redline between net buyers and sellers in the last six months.
With a current price of $40,600, Bitcoin is a stone’s throw away from crossing this level, and this is expected to reignite more buying pressure, prompting higher prices.
Image source: Shutterstock