- Bullish divergence on the daily RSI suggests weakening selling pressure as Bitcoin hovers near $77,000 within a descending channel.
- Bitcoin may retest the $83,500 resistance level if current support holds, signaling a potential short-term reversal from the bearish trend.
- Market cycles and altcoin season patterns indicate possible consolidation before a breakout, with Fibonacci targets above $170,000.
Early indications of a possible recovery are being seen in the price activity of Bitcoin. Bitcoin is currently trading close to $77,000 after momentarily falling below that level. A falling channel that began to form after the top at $100,000 continues to define the overall chart structure, which is still bearish.
Nonetheless, the daily RSI’s positive divergence indicates waning selling pressure. Bitcoin might soon try to retest its main resistance level, which is about $83,500, if this trend continues. This level is important for the short-term direction of the market because it is located at the upper edge of the present falling wedge pattern.
Bullish Divergence Meets Structural Resistance
Bitcoin’s daily chart on Binance reveals a dominant descending channel. Price movements have consistently followed this bearish structure. Recent action shows a bounce from the lower trendline, offering a slight shift in momentum. Notably, a previous rising wedge breakdown added fuel to the downward move. This breakdown aligned with the prevailing bearish trend, intensifying pressure on support levels.
However, technical indicators suggest a possible reversal. The RSI forms higher lows while Bitcoin’s price forms lower lows. This bullish divergence often signals an upcoming trend change. Besides, this setup often leads to short-term rebounds if supported by strong buying pressure. The current level, therefore, becomes crucial. Sustaining support here could validate the divergence and ignite a move toward the $86,000 resistance zone.
Altcoin Seasons and Long-Term Trajectory
Meanwhile, CryptooELITES highlights broader market cycles and altcoin season patterns. These periods frequently coincide with Bitcoin consolidating before explosive moves upward. Historical chart data shows that Bitcoin tends to surge after such consolidations. Moreover, Fibonacci levels hint at long-term bullish potential, with targets above $170,000.
Key support zones remain intact, with $80,000 acting as a vital pivot. Each dip into major support levels has sparked notable buying interest. Besides, higher lows and consistent demand at marked levels confirm the underlying bullish trend. Consequently, if Bitcoin confirms the current level as a bottom, a sustained move higher remains possible.
