Analysis: Bitcoin's daily RSI indicator shows a clear bullish divergence signal, which indicates that it is likely to surge!

CoinGlass data shows that as of press time, $58,018 is the level where Bitcoin attracts the most liquidity, and its price is eroding the buy support below $57,000.

In addition, from July 4 to 5, the total amount of Bitcoin long positions exceeded $220 million. After the weekend, short positions experienced a liquidation, and trader Daan Crypto Trades noticed that some short positions were closed when Bitcoin reached a local high of $58,500.

Other analysts saw encouraging signals from Bitcoin's relative strength index (RSI) on the daily time frame, including bullish divergences. Analyst Wolf wrote on X: "My initial bearish target was $52,000, but it looks like the bulls may be one step ahead of me. The daily RSI indicator has seen a clear bullish divergence, and the expanding wedge pattern has further increased investor interest." (Cointelegraph)

Glossary:

Bullish divergence, also known as convergence, occurs when the price forms a lower low compared to the higher low of the indicator. In this case, traders should bet on rising prices. Since indicators are used to predict price direction, an increase in the indicator value means rising prices. When the price reaches a higher peak on the chart and the indicator reaches a lower or higher one.

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