- Bitcoin price reveals an exaggerated bullish divergence on the four-hour chart.
- This setup forecasts a bullish move for BTC that could propel it to $29,726.
- A four-hour candlestick close below $26,555 will create a lower low and invalidate the bullish thesis.
Bitcoin price shows a bullish setup in formation, hinting at an optimistic start to the week. If this technical formation plays out, BTC could be due for a quick recovery rally that could retest a key psychological level.
Also read: Bitcoin price action from 2019 hints what could happen to BTC in 2023
Bitcoin price awaits a trigger
Bitcoin price kick-started its descent on April 18 as it retested the bearish breaker setup. As a result, BTC shed 11% over the next five days. As BTC consolidates around $27,231, the narrative is starting to improve.
The four-hour chart shows Bitcoin price forming equal lows in terms of candlestick bodies, while the Relative Strength Index (RSI) has been setting up higher lows. This non-conformity is termed ‘exaggerated bullish divergence’ and often leads to an ascent in the underlying asset’s price.
For Bitcoin price, a breakout from this setup could lead to a quick recovery rally that retests the $28,774 and $29,774 hurdles. The latter is significant since it coincides with the midpoint of the four-hour Fair Value Gap (FVG), extending from $29,494 to $29,957.
In some cases, Bitcoin price could extend higher and tag the $30,000 psychological level.
BTC/USDT 4-hour chart
The short-term bullish outlook for Bitcoin price makes sense from a logical standpoint, but the volatility could continue to chop around for longer than anticipated. If the selling pressure spikes due to the upcoming macroeconomic events, the bulls’ plans could turn against them.
If Bitcoin price produces a four-hour candlestick close below $26,555, it will create a lower low and invalidate the bullish thesis. In such a case, BTC could slide 5.30% and tag the $25,175 support level.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Crypto Today: Bitcoin, Ethereum and XRP gain on Friday, meme coin NEIRO erases recent gains
Bitcoin steadies above $60,000 on Friday, gains over 1% on the day. Ethereum trades above $2,400, while BlackRock Spot Ethereum ETF sees a $17.8 million inflow on Thursday. XRP is back above $0.5300 as Ripple files cross-appeal in SEC lawsuit.
Cardano celebrates milestone: Hosts Argentina’s first legally enforceable smart contract
Cardano ambassador Mauro Andreoli recently announced Cardano’s milestone of Argentina’s first legally and judicially enforceable contract. The first loan agreement in Cardano under Argentine law involves a loan of 10,000 ADA tokens, currently valued at $3,380.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC finds support around $60,000
Bitcoin is finding support around the key level, and a close below this level could signal a decline. Ethereum is approaching a critical resistance barrier; rejection from this level suggests a decline ahead. Meanwhile, Ripple is stuck in a range, reflecting a period of indecision among traders.
SEC sues Cumberland DRW for acting as an unregistered securities broker, Solana ETFs at risk
SEC sued crypto trading company Cumberland DRW for allegedly acting as an unregistered broker. Solana was among five cryptocurrencies the SEC alleged to be securities sold via the platform.
Bitcoin: Is BTC sell-off over?
Bitcoin price declined over 6% this week until Friday as the escalation of the conflict between Iran and Israel added fuel to this sell-off. The decline was also supported by falling institutional demand for ETFs. BTC bulls seem to be holding strong at a critical support level.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.