Bitcoin’s correction appears to be losing steam, as indicated by price momentum divergence, the formation of a Doji candlestick and other bullish patterns.
Bitcoin’s price dropped by over 25% during the Aug. 5 global market rout. However, emerging signals suggest that this decline could be a bear trap, and the price may return to its course toward a new record high in 2024.
The Bitcoin (BTC) price shows signs of bullish divergence on the weekly charts.
More specifically, BTC’s price has formed lower lows since July. On the other hand, its weekly relative strength index (RSI) has formed higher lows. This divergence indicates that the downward momentum is weakening, and a potential reversal to the upside might be imminent.
