At the start of the week, the global crypto market regained value as investors flocked to it. As the market returned to normal, it was able to recoup momentum compared to the previous week’s close.
The global crypto market capitalization is now $1.87 trillion, up 0.22 percent from the previous day. At the time of writing BTC is trading above the $40,000 mark and has declined by more than one percent.
According to a famous crypto expert, an overlooked indication in Bitcoin’s longer-term chart indicates that the bull market is about to enter a new leg, which will propel BTC to new all-time highs.
Long Term rally soon for BTC?
Credible, a pseudonymous trader, says he’s looking at BTC’s three-week candles and finds a divergence between price movement and momentum indicator relative strength index (RSI), implying that significant, long-term rallies are on the way.
“Let’s do it again. As long as price continues to close above $34,000 on the [three-week] timeframe, this hidden bullish divergence is likely to play out and send us to new all-time highs (ATH). BTC.”
Despite the fact that Bitcoin’s 50% drop from $69,000 is substantial, Credible claims that BTC never made a lower low, maintaining its bullish market structure in the longer periods.
He is not sure how this can be bearish considering it rallied to new ATHs the previous time it was around $30,000, and we haven’t even hit a lower low yet this time. Market structure is simple, he said.
Zooming in on the lower time frames, the closely followed expert claims that BTC is potentially forming a triangle bottom pattern out of all the possible situations.
After BTC reaches $42,500, Credible believes we’ll see confirmation of a bullish reversal over the next several days, with $45,000 being the next objective.
The everyday demand has been stable, and if Option 1 plays out, the triangle structure may have already been completed. If this is the case, it will become obvious in the coming days. Starting with a $42,500 break and quickly moving up to $45,000.