Bitcoin has reclaimed $95,000, supported by a confirmed double divergence and recovery above the 4-hour 50 EMA.
The $100,000 resistance level is a critical target, with traders watching for increased volume and momentum.
Short-term volatility may lead to retests of $95,000, but broader signals such potential gets bullish continuation.
Bitcoin (BTC) has successfully reclaimed the $95,000 level following a double divergence pattern playing out on the charts. This recovery coupled with the recently having cleared the 4-hour 50 exponential moving average (EMA) has created speculation that Bitcoin will get back to test the $100,000 price point. This is eagerly observed by traders because one can often rely on such technical signals to predict the further direction of the cryptocurrency.
Double Divergence and 50 EMA with Market Context
The emerging price pattern for Bitcoin has been that a confirmed double divergence has emerged on the relative strength index (RSI). This occurs when the price forms lower lows and the RSI forms higher lows meaning there might be a bullish reversal. However, this divergence has occurred when Bitcoin has recovered back to the key $95,000.
https://twitter.com/CryptoJelleNL/status/1862059350967116173
Continuing on the optimistic tone, BTC has reclaimed position above the 4-hour 50 EMA. This technical level is usually an active & resistance level and since bitcoin has closed above this level, this depicts renewed strength in the short term trend.
A sentiment and technical outlook for this and the broader cryptocurrency market has been looking to the upside in recent weeks. Bitcoin standing above key support level was crucial and the direction that it takes could determine the overall trend of the market this year.
Resistance at $100,000: A Key Test
Bitcoin bouncing back to $95,000 is great, but the next level that the dig asset is aiming at is $100,000. In this level we do not only have a psychological barrier which is a resistance area but it is a key tested area that has been seen many times before. Traders will be on the look for a demonstration of higher buying volume and intensity to breach this zone and support the move higher.
But, it has to be admitted that getting to $100,000 will not be easy, with no linking or smooth transitions. Bitcoin may experience brief retracement due to profit selling or insufficient upside pull back; $95 000 support level may be tested.
The post Traders Watch $95,000 Support: How Double Divergence Is Driving Bitcoin’s Next Move appeared first on Crypto News Land.
