Bitcoin (BTC) is preparing for a new price breakthrough, as indicated by two classic technical indicators, popular trader Roman came to this opinion. Note that such posts often appear during the period of BTC drawdown, since there is an audience demand for this. Currently, bearish sentiment prevails in the crypto market, and Bitcoin is consolidating above $6,000. This downward movement has disappointed its holders, and even long-term investors have a tendency to take profits. Key Indicators: RSI and Bollinger Bands Roman emphasized the importance of the Relative Strength Index (RSI) and Bollinger Bands on the weekly chart, which signal upside potential. The RSI, a momentum oscillator, measures the speed and change in price movements and is often used to determine overbought or oversold conditions. Bollinger bands, consisting of a middle band (simple moving average) and two outer bands (standard deviations from the average), are used to determine volatility and national price surges.
Chart analysis shows the third bullish divergence between the Bitcoin price and RSI. This divergence is manifested in the fact that the lower lows of the RSI do not correspond to the lower lows of the price, which indicates a weakening of bearish momentum. This pattern is a strong bullish signal, often preceding a significant increase in prices. In addition, Bollinger bands are narrowing, signaling a decrease in volatility. This “compression” often precedes significant price movements. Considering that the RSI shows a bullish divergence, it is inclined to push upward. According to Roman's analysis, the recent Bitcoin consolidation is a healthy correction in the market's bullish turn. The divergence of the RSI and the narrowing of the Bollinger Bands indicate a significant price movement. For this reason, the trader predicts a rise to $90,000, which is a significant increase compared to the current level.
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