As the month of October kicks off, crypto market participants have started to present their observations and predictions for the new month. Bitcoin supporters are particularly active in these discussions, as speculation about Bitcoin’s next move becomes a major topic of debate.
As market observers give their thoughts on the asset’s potential future performance, one analyst highlights the importance of paying attention to certain technical signals.
According to a post shared on X, formerly Twitter, pseudonymous user CryptoJelleNL, a hidden bullish divergence has started to form on Bitcoin charts.
A bullish divergence typically occurs when the price of an asset falls to a new low, while an oscillator fails to make a new low. This is generally received positively by market participants, as it demonstrates that the bears are losing momentum. During this period, bulls generally attempt to regain control of the market. As such, a bullish divergence typically marks the end of a downtrend and introduces the start of an uptrend.
For Bitcoin, this could look like a massive increase in its current value, which could potentially push it above $30,000; a price eagerly awaited by investors and traders.
While Bitcoin is currently trading a little above the $27,000 mark, the analyst is confident that $30,000 remains major resistance. He goes on to share his buying strategy while urging traders and investors to ignore the fear of missing out (FOMO).
Like his job bed;
“Bitcoin’s weekly hidden bullish divergence is starting to manifest. Remember, $30,000 is strong resistance until further notice. I continue to buy dips inside this range – waiting for the breakout. Don’t let LTF moves lure you into FOMO, stick to the plan.
In his most recent article, the analyst shared a technical candlestick chart, in which he traced an ascending triangle that had formed as far back as May. He made a bold statement, stating that if Bitcoin rises above $30,000, it will indicate that the bull run has officially begun.
At the time of writing, Bitcoin is trading at $27,389. The supreme cryptocurrency has managed to maintain decent gains and preserve them over the past week. Over the past 7 days, Bitcoin has seen its gains increase by 2.65%.
Although Bitcoin performed quite decently in September, trading volume gained significant momentum, reaching 217% over the past 7 days.