Bitcoin Shows Reversal Signs; Crypto Strategist Predicts Bearish 'Obliteration

Prominent crypto analyst warns that Bitcoin (BTC) is displaying strength indicators on both daily and weekly charts.

Credible Crypto, a pseudonymous analyst with 346,000 followers on platform X, highlights Bitcoin's RSI showing bullish divergences on both daily and weekly charts. In technical terms, a classic bullish divergence indicates a potential trend reversal, while a hidden one suggests trend continuation.

Credible Crypto notes:

  • The biggest liquidation event since Dec '21, double the FTX collapse.
  • BTC's daily chart shows a classic bullish divergence, and its weekly chart reveals a hidden bullish divergence.
  • Bitcoin's dominance is retesting a bullish breakout from a two-year range.
  • Predictions of BTC dropping to $20,000, $12,000, or $10,000 are emerging, though there's no break in the bullish trend to suggest a momentum shift (the first break is at $24,800).
  • He warns that bears risk significant losses.

Source: Credible Crypto/X Source: Credible Crypto/X

Credible Crypto notes that Bitcoin has spent a significant part of the year consolidating at lower levels, hinting at a potential sharp rise. He adds, "While it may seem insignificant now, in a trending environment, situations can intensify rapidly.

Source: Credible Crypto/X

As of now, Bitcoin is priced at $26,024.

Aug 27, 2023

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