Bitcoin’s Key Indicators Flash Bullish Signals, According to Trader
Popular trader Roman recently highlighted two classic technical indicators for BTC/USD, suggesting that Bitcoin (BTC) could be setting the stage for a significant price breakout. Roman's analysis points to the Relative Strength Index (RSI) and Bollinger Bands on the weekly chart as key signals for a potential price surge.
Despite a lackluster performance in June that left many holders disappointed, Bitcoin's long-term outlook remains promising. Some analysts believe that BTC is merely consolidating below its all-time highs, a typical behavior in bull markets that can persist for several months.
Roman, however, sees a return to the highs seen earlier this year as imminent. On June 21, he noted that Bitcoin is forming a third bullish divergence between its price and RSI, while many traders are capitulating and predicting lower prices. He emphasized that the Bollinger Bands are tightening, which often precedes a period of high volatility.
"We are now forming a 3rd bullish divergence between Price and RSI while many are capitulating & calling for lower," Roman wrote. "Bollinger Bands are also squeezing tighter - creating that volatility to send without returning." An accompanying chart showed RSI making lower lows as the price made higher lows. This combination, along with the narrowing Bollinger Bands, suggests that significant volatility could be on the horizon.