According to technical analysis, a hidden bullish divergence is forming with the recent price action this week, and this could be the setup that pushes Bitcoin to new price highs.
On the other hand, while the price printed a higher low, the Relative Strength Index (RSI) posted a lower low in the same time frame. This mismatch between price and momentum creates what is called a hidden bullish divergence, which is a technical pattern that suggests bullish continuation.
The weekly candlestick chart shared by CrypFlow shows Bitcoin defending an important support level around $114,000 and is now on two bullish weekly candlesticks. According to the analyst, if this divergence is confirmed as expected, it could provide the foundation for Bitcoin to push to new highs again. At the time of writing, Bitcoin is trading 5.7% below its current all-time high of $124,128.
At the time of writing, Bitcoin is trading at $117,040, already playing out bullish continuation by being up by 9% from its September open.
