Bitcoin (BTC) closed above $57,000 for the week of July 7 as markets recovered from a “massive bearish divergence.”
Traders See ‘Positive Signals’ in BTC Price Daily Close
According to data provided by Cointelegraph Markets Pro and TradingView, BTC price action is consolidating in a range that is about 8% above the weekly low of $53,500.
This price occurred after the market closed on July 5th and represents the lowest level for BTC/USD since late February.
However, despite the “after-hours” weekend trading, Bitcoin bulls managed to recover some of the lost ground, leaving the lows as an exception as of this writing.
“There has been a huge downtrend in the last few days,” popular trader and analyst Rekt Capital summarized in one of his recent analysis posts on X (formerly Twitter).
“However, Bitcoin recently closed above $56,750 on the daily and is protecting this level as support… Bitcoin is showing positive signs of continuing to cluster around the Range Low area.”
BTC/USD ultimately failed to reach the key price point of $58,250 at the most recent daily close, which is below the target price of $58,450. Rekt Capital argued that this performance “should lead to a rally to around $60,600.”
According to the latest real-time data from monitoring resource CoinGlass, the highest liquidity level at the time of writing is $58,018, with the price eroding buy support below $57,000.
The total BTC long liquidation from July 4th to 5th exceeded $220 million, and the total across cryptocurrencies reached $750 million.
Short positions continued throughout the weekend, with popular trader Daan Crypto Trades seeing some of his short positions close at a local high of $58,500.
Bitcoin RSI fuels bullishness
Some experts have found positive signals, including a bullish divergence in Bitcoin’s Relative Strength Index (RSI) reading on the daily timeframe.
Related: Government Bitcoin Sales Account for Just 4% of $225 Billion Bull Market Inflows – Analyst
“I was initially aiming for 52k, but it looks like the bulls got past me,” social media analyst Wolf told X followers on July 6.
“There is a notable bullish divergence in the daily RSI and a widening wedge pattern adds interest.”
Trader, analyst, and podcaster Scott Melker, known as the “Wolf of All Streets,” recently suggested that the power of the daily closing price could have a long-term impact on the BTC price floor.
“This is what we are looking for. If we get a strong close today, it is very likely that the bottom of this correction has come in,” he wrote in part of his latest X post.
“It looks very good to close with elbows up on the RSI. And RSI is oversold again.”
At the time of writing, the daily RSI is at 32.7, the highest “oversold” level since August 2023.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.