Following the release of economic data in the United States on September 13, BTC registered a fall of 9%. Despite this, several signals show that a rebound is imminent for itcoin (BTC). Among these signals, we can cite the bullish divergence on the RSI and the gradual decline in volume. There is also the appearance of the “three drive” figure. On a broader view, BTC nevertheless remains in the range between $18,800 and $25,000.
Bitcoin, imminent rebound: Several “bullish divergences”
According to analysis by Stratos_Trading on Twitter, several bullish divergences appear on the bitcoin chart. Indeed on an M30 scale, the RSI clearly shows a bullish divergence that usually precedes a bitcoin rebound. This may not benefit investors over the long term. However, this is an interesting opportunity for day traders.
To this is added the volume which becomes increasingly weak with each new DIP. This shows that the sellers are losing more strength as the price drops. Combined with the RSI showing higher and higher lows, we can say that the sellers are starting to capitulate.
Alongside these bullish signals, there is also the “three drive” pattern. This is a recurring reversal pattern on the market. Together, all of these signals form a “bullish divergence” that predicts a rebound in bitcoin (BTC).
BTC in range, but not for long?
All we saw earlier are bitcoin bounce signals on the M30 scale. But with a broader view (daily), we can see that bitcoin (BTC) remains in range between $18,800 and $25,000. This cryptocurrency is also following a 5-month-old bearish trendline. In his tweet, CaptainFaibik suggests that if our friend BTC breaks this downtrend line, there will likely be a move higher towards $28,000. This will be the perfect time to to buy.
The second option he offers is a bearish scenario. According to him, the next DIP will be around $15,400, if the price breaks the support at $18,800.
At the moment, swing traders are struggling to find trading opportunities. As for scalpers and day traders, they will be able to exploit this rebound in bitcoin in the short term.
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