Bitcoin’s Key Indicators Flash Bullish Signals, According to Trader

Bitcoin’s Key Indicators Give Bullish Signals, According to Trader

Popular trader Roman recently pointed out two classic technical indicators for BTC/USD and suggested that Bitcoin (BTC) is setting the stage for a significant price breakout. Roman’s analysis points out that the Relative Strength Index (RSI) and Bollinger Bands on the weekly chart are key signals for a potential price increase.

Despite its poor performance in June, which disappointed many investors, Bitcoin’s long-term outlook remains promising. Some analysts believe that BTC is only consolidating below all-time highs; This is typical behavior in bull markets that can last for several months.

However, Roman thinks a return to the highs seen earlier this year is imminent. He noted that on June 21, Bitcoin showed a third bullish divergence between its price and the RSI, while many traders capitulated and predicted lower prices. He emphasized that Bollinger Bands tighten and this usually precedes a period of high volatility.

“We are currently forming the 3rd bullish divergence between Price and RSI as many give in and demand lower prices,” Roman wrote. “Bollinger Bands are also getting tighter – creating volatility to send out without reversing.” The accompanying chart showed that the RSI made lower lows as the price made higher lows. This combination, along with the narrowing Bollinger Bands, indicates that serious volatility may be on the horizon.