Bitcoin (BTC) has shown resilience in its recent recovery, signaling positive indicators for a potential significant rally in the decentralized finance (DeFi) flagship asset. Technical analysis (TA) suggests promising trends that could shape the near future of BTC.
Bullish Signs in Technical Analysis: Notably, Bitcoin recently achieved its first bullish cross on the weekly stochastic relative strength index (RSI) at an unusually low level, a feat not seen since July 2022. This observation was shared by pseudonymous cryptocurrency analyst Moustache, also known as el_crypto_prof, on September 18.
-Bullish Cross (weekly Stoch RSI)🎯
The last time this happened this low was over a year ago (July 2022). pic.twitter.com/qn8dbEKk9Z
— 𝕄𝕠𝕦𝕤𝕥𝕒𝕔ⓗ𝕖 🧲 (@el_crypto_prof) September 18, 2023
TD Sequential Indicator’s Buy Signal: Cryptocurrency trading expert Ali Martinez has also pointed out a buy signal on Bitcoin’s three-day chart using the TD Sequential indicator. This tool, created by market analyst Tom DeMark, is employed to evaluate potential trend reversals and continuation patterns in financial markets, including the cryptocurrency space.
Price Targets: Martinez suggests that increased buying pressure could propel BTC prices towards the mid or upper boundary of its trading channel, setting targets at $28,000 or even $31,000. However, he advises keeping an eye on the “TD Risk Line at $24,500” as a crucial point for invalidation of this prognosis.
Still, watch the TD Risk Line at $24,500. It’s the key invalidation point. pic.twitter.com/cCqIvcRJDs
— Ali (@ali_charts) September 17, 2023
Bitcoin’s Current Performance: As of the latest data, Bitcoin is trading at $27,119, reflecting a 1.92% gain in the last 24 hours, a 5.56% increase over the past week, and a 4.67% rise in the previous month. This recent breakthrough above the psychological level at $27,000 could pave the way for further positive movements, provided the bullish indicators continue to attract optimistic sentiment among investors.