Bitcoin (BTC) is showing signs of a potential breakout as a bullish divergence appears on the daily timeframe. This technical pattern suggests that momentum is shifting in favor of the bulls, increasing speculation that Bitcoin could reach the much-anticipated $100K target.
What is a Bullish Divergence?
A bullish divergence occurs when Bitcoin’s price forms lower lows, but the Relative Strength Index (RSI) or another momentum indicator forms higher lows. This suggests that selling pressure is weakening, and a trend reversal may be imminent. Traders often see this as a buying opportunity, anticipating a price surge.
Bitcoin’s Path to $100K
With Bitcoin currently showing bullish divergence, analysts believe that a rally toward $100K is becoming more likely. However, for BTC to achieve this milestone, it must first break key resistance levels, particularly around $75K and $85K. If Bitcoin manages to hold above these levels with strong volume, the path to six figures could be clear.
Risks and Market Conditions
While bullish divergence is a positive signal, external factors such as macroeconomic conditions, regulatory developments, and market sentiment also play a crucial role. Investors should remain cautious and watch for confirmation signals before making trading decisions.
Despite encouraging technical signals, investors should closely monitor market conditions and external factors before making trading decisions.
