Bitcoin 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
Bitcoin (BTC) price action is solidifying a range that is about 8% above its weekly low of $53,500, according to data from Cointelegraph Markets Pro and TradingView.
This price was recorded 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’s recent close above $56,750 is protecting this level as support… so 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-attracting level at the time of writing is $58,018, with the price eroding bid 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 the better of 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.”
Scott Melker, a trader, analyst, podcaster and otherwise known as the “Wolf of Every Street,” recently suggested that the strength of the daily closing price could be influencing the long-term 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.”
As of this writing, the daily RSI is at 32.7, the most “oversold” zone 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.