Bitcoin aims for 90K based on bullish signals on longer time frames
Bitcoin (BTC) is poised for a major price breakout, according to an analysis by popular trader Roman. Despite bearish sentiments, Bitcoin has been consolidating above $63,000 after facing resistance at $70,000. This consolidation is seen as a healthy correction within a bull market.
Roman highlights the significance of two key technical indicators, the Relative Strength Index (RSI) and Bollinger Bands, on the weekly chart. The RSI measures the speed and change of price movements and is used to identify overbought or oversold conditions. The Bollinger Bands, which consist of a middle band and two outer bands, are used to identify volatility and potential price breakouts.
The analysis reveals a bullish divergence between Bitcoin’s price and the RSI, indicating weakening bearish momentum. This pattern often precedes significant price increases. Additionally, the Bollinger Bands are narrowing, signaling reduced volatility. This “squeeze” is typically followed by significant price movements. With the RSI showing bullish divergence, an upward breakout is expected.
Roman predicts a target price of $90,000, a substantial increase from current levels. Traders and investors are advised to monitor the weekly close for confirmation of the bullish continuation.
Bitcoin is currently trading at $64,040, with a slight decline in the last 24 hours and a 3% drop over the past week. According to QCP Capital, Bitcoin’s price consolidation is likely to continue for the next two months, with a potential bull run not expected until late 2024. However, the bullish divergence and tightening Bollinger Bands indicate that a significant price move is on the horizon.
While a major bull run may not occur until late 2024, traders and investors should remain vigilant as Bitcoin prepares for a breakout. It is important to note that this article does not constitute investment advice, and investing in Bitcoin carries risks.
