Bull Signal From Bitcoin Bottom Is Best Hope Yet For Continuation

Tony "The Bull" Severino

Last Updated: June 11, 2024 1:56 pm

3 mins read

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Bitcoin price continues to struggle to regain any type of bullish momentum, and keeps grinding at repeatedly tested support. In the past, when this happens, the support ultimately breaks down and a cascade of liquidations begin.

However, there’s a bullish signal brewing that is thus far the best hope for further continuation to the upside. The reason for the hope, is because the last time Bitcoin gave such a signal, it was the bear market bottom and that support eventually held for good. Could it happen again during the bull phase of the market cycle?

Crypto Market Price Action Potentially Feigns Weakness While Buyers Load Up

Bitcoin price is in a dangerous spot, down more than 50% from local highs, but unable to regain its footing. Each meager attempt to recover has been met by another selloff and fall to support.

Support isn’t breaking either, but even the strongest support levels eventually break down. The more tests of that support, the more likely that support might fail.

That is unless although price action looks weaker, buying is actually gaining strength. And that’s exactly what the Relative Strength Index suggests on the three-day timeframe.

A bullish divergence has formed on the three-day Relative Strength Index | Source: BTCUSD on TradingView.com

Bullish Divergence Matches Bitcoin Bear Market Bottom

The Relative Strength Index, or RSI, measures the strength of an asset compared to price action, and can tell analysts when an asset is oversold or overbought. These conditions can lead to a reversal, or provide other intel about the price action.

After such a deep selloff, Bitcoin still hasn’t reached into oversold territory, but it has found support at a rising trend line that dates back to the bear market bottom. The only other time this trend line was touched between then and now, was on Black Thursday.

If the rising RSI trend line holds, support in price action might also do the same. And if it does, there’s a chance a similar reaction could result. Following each touch of this trend line has followed with months of powerful uptrend.

It is only when these impulses end does Bitcoin comes crashing back down, and the RSI touches down again. At the same time price action hits the trend line, there’s also a bullish divergence – a signal that also was visible during the bear market bottom. Could it once again be indicating a bottom is in, but the bottom of the bull market?

https://twitter.com/tonyspilotrobtc/status/1410733637792768009?s=12

Breaking below a trend line that supported both past bottoms could be disastrous, so whatever the conclusion, it should yield significant results.

Follow @TonySpilotro on Twitter or via the TonyTrades Telegram. Content is educational and should not be considered investment advice.

Featured image from iStockPhotos, Charts from TradingView.com

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

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