- Bitcoin shows hidden bullish divergence, hinting at a potential rally.
- Analyst Javon Marks highlights key support and resistance levels to watch.
- Confirmation of the divergence is crucial for validating the bullish signal.
Bitcoin (BTC) may be on the verge of another bullish move, according to crypto analyst Javon Marks. He points out a hidden bullish divergence forming on BTC’s 3-hour (3H) chart.
#BTC (Bitcoin)’s 3h Chart confirms a Hidden Bullish Divergence that can be pointing towards another bullish move in the near term! pic.twitter.com/sSEBKtlXoS
— JAVON⚡️MARKS (@JavonTM1) September 17, 2024
This technical pattern often signals a potential price increase in the near term. Marks’ analysis suggests that this divergence could trigger a rally, giving traders an optimistic outlook as Bitcoin’s next move unfolds.
What Is a Hidden Bullish Divergence?
A hidden bullish divergence occurs when the price forms higher lows, while an indicator—such as the Relative Strength Index (RSI)—forms lower lows. This chart pattern typically suggests that despite a drop in momentum, the price is holding strong and may rise soon.
Hidden divergences are often signals of trend continuation, meaning Bitcoin’s current upward trend could gain more strength. In simple terms, even though indicators show weakness, the price action remains solid, hinting at an upcoming surge.
Traders need to watch for confirmation of this signal. If the price of Bitcoin breaks key resistance levels while maintaining strong momentum, this chart pattern could be validated.
Key Levels to Watch
A bounce from support could lead to a breakout, confirming the bullish outlook. Confirmation of the divergence is key to avoiding false signals.
Watching the RSI and price action closely will help traders stay ahead of potential market shifts. Javon Marks’ analysis of Bitcoin’s 3H chart suggests that a hidden bullish divergence could lead to another upward move.
Traders should wait for confirmation using lower and higher time-frames before jumping in. Bitcoin’s price action in the coming days will reveal whether this bullish signal holds true.