Bull Signal From Bitcoin Bottom Is Best Hope Yet For Continuation

Bitcoin price continues to struggle to regain any type of bullish momentum, and keeps grinding at repeatedly tested support. In the past, when this happens, the support ultimately breaks down and a cascade of liquidations begin.
However, there’s a bullish signal brewing that is thus far the best hope for further continuation to the upside. The reason for the hope, is because the last time Bitcoin gave such a signal, it was the bear market bottom and that support eventually held for good. Could it happen again during the bull phase of the market cycle?
Crypto Market Price Action Potentially Feigns Weakness While Buyers Load Up
Bitcoin price is in a dangerous spot, down more than 50% from local highs, but unable to regain its footing. Each meager attempt to recover has been met by another selloff and fall to support.
Support isn’t breaking either, but even the strongest support levels eventually break down. The more tests of that support, the more likely that support might fail.
Related Reading | The Missing Ingredient From A Full On Bitcoin Reversal
That is unless although price action looks weaker, buying is actually gaining strength. And that’s exactly what the Relative Strength Index suggests on the three-day timeframe.

A bullish divergence has formed on the three-day Relative Strength Index | Source: BTCUSD on TradingView.com
Bullish Divergence Matches Bitcoin Bear Market Bottom
The Relative Strength Index, or RSI, measures the strength of an asset compared to price action, and can tell analysts when an asset is oversold or overbought. These conditions can lead to a reversal, or provide other intel about the price action.
After such a deep selloff, Bitcoin still hasn’t reached into oversold territory, but it has found support at a rising trend line that dates back to the bear market bottom. The only other time this trend line was touched between then and now, was on Black Thursday.
Related Reading | Analyzing The Critical Bitcoin June 2021 Monthly Close
If the rising RSI trend line holds, support in price action might also do the same. And if it does, there’s a chance a similar reaction could result. Following each touch of this trend line has followed with months of powerful uptrend.
It is only when these impulses end does Bitcoin comes crashing back down, and the RSI touches down again. At the same time price action hits the trend line, there’s also a bullish divergence – a signal that also was visible during the bear market bottom. Could it once again be indicating a bottom is in, but the bottom of the bull market?

Does the RSI trend line hold? #Bitcoin pic.twitter.com/ILBpVGY7X1
— Tony “The Bull” Spilotro (@tonyspilotroBTC) July 1, 2021

Breaking below a trend line that supported both past bottoms could be disastrous, so whatever the conclusion, it should yield significant results.
Follow @TonySpilotro on Twitter or via the TonyTrades Telegram. Content is educational and should not be considered investment advice.
Featured image from iStockPhotos, Charts from TradingView.com

Avatar

Related Articles

- Advertisement -

Latest Articles

bitcoin
Bitcoin (BTC) $ 27,810.45
ethereum
Ethereum (ETH) $ 1,892.65
tether
Tether (USDT) $ 0.998757
bnb
BNB (BNB) $ 315.11
usd-coin
USD Coin (USDC) $ 0.997681
xrp
XRP (XRP) $ 0.480064
cardano
Cardano (ADA) $ 0.377493
staked-ether
Lido Staked Ether (STETH) $ 1,893.60
dogecoin
Dogecoin (DOGE) $ 0.073271
matic-network
Polygon (MATIC) $ 0.926857
solana
Solana (SOL) $ 20.63
tron
TRON (TRX) $ 0.076954
polkadot
Polkadot (DOT) $ 5.45
litecoin
Litecoin (LTC) $ 91.19
binance-usd
Binance USD (BUSD) $ 0.997476
shiba-inu
Shiba Inu (SHIB) $ 0.000009
avalanche-2
Avalanche (AVAX) $ 14.56
dai
Dai (DAI) $ 0.998979
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 27,813.45
uniswap
Uniswap (UNI) $ 5.12
chainlink
Chainlink (LINK) $ 6.59
leo-token
LEO Token (LEO) $ 3.57
cosmos
Cosmos Hub (ATOM) $ 10.84
okb
OKB (OKB) $ 47.16
monero
Monero (XMR) $ 155.28
the-open-network
Toncoin (TON) $ 1.91
ethereum-classic
Ethereum Classic (ETC) $ 18.35
stellar
Stellar (XLM) $ 0.088955
bitcoin-cash
Bitcoin Cash (BCH) $ 116.46
internet-computer
Internet Computer (ICP) $ 4.93
true-usd
TrueUSD (TUSD) $ 0.997921
filecoin
Filecoin (FIL) $ 4.64
lido-dao
Lido DAO (LDO) $ 2.11
aptos
Aptos (APT) $ 8.43
hedera-hashgraph
Hedera (HBAR) $ 0.052581
quant-network
Quant (QNT) $ 109.42
arbitrum
Arbitrum (ARB) $ 1.25
crypto-com-chain
Cronos (CRO) $ 0.060574
near
NEAR Protocol (NEAR) $ 1.63
vechain
VeChain (VET) $ 0.020430
ggtkn
GGTKN (GGTKN) $ 0.112996
apecoin
ApeCoin (APE) $ 3.25
the-graph
The Graph (GRT) $ 0.126333
algorand
Algorand (ALGO) $ 0.152485
the-sandbox
The Sandbox (SAND) $ 0.546480
paxos-standard
Pax Dollar (USDP) $ 0.997156
frax
Frax (FRAX) $ 0.997209
eos
EOS (EOS) $ 0.900331
edgecoin-2
Edgecoin (EDGT) $ 1.00
aave
Aave (AAVE) $ 67.40