The majority of cryptocurrencies continued their losses on Tuesday, following stock market drops.
Over the last two weeks, Bitcoin (BTC) has been in a decline as traders wait for a definitive move over or below the $40,000 price barrier.
Altcoins have been in and out of popularity during the last month, suggesting market players’ unease.
On Tuesday, the price of Bitcoin (BTC) successfully returned from near the support level, as whales renewed their enthusiasm in an expected surge.
The price of Bitcoin has now confirmed a bullish divergence pattern. This suggests that the bears are losing steam and the bulls are poised to take control of the market.
Bitcoin bulls emerging in the market
The price of Bitcoin (BTC) has rebounded to the $39k-$41k region as market sentiment turns bullish following Elon Musk’s acquisition of Twitter and whale buying on the dip.
The price of bitcoin has risen by more than 5% in the last 24 hours, with the current price hovering at $40,472.
The confirmation of bullish divergence on the BTC chart was observed by crypto expert Scott Melker (The Wolf of All Streets) in a tweet on April 26. At current levels, he feels BTC is creating a bottom.
While the price has dropped to a new low, the RSI has yet to dip to that level. As a result, the daily and lower time frames have confirmed bullish divergence.
Furthermore, according to crypto expert Rekt Capital, Bitcoin (BTC) will continue to rise since the RSI indicates that the BTC surge isn’t done yet. Furthermore, the price may drop to the red zone before rebounding to build a powerful bullish trend.
Bitcoin price action has broken the channel upwards, as well as breaking above various patterns in different timeframes, resuming positive momentum in the market. Analysts anticipate a strong move above $45k in the next days.
Furthermore, Fidelity Investments’ decision to allow investors to contribute up to 20% of their Bitcoin holdings to their 401(k) plans may accelerate Bitcoin’s widespread adoption.
BTC Price Action
As BTC price stabilises around $40,500, the current strong advance in Bitcoin price awaits a breakout over $42,000. The price of bitcoin has increased by about 4% in the last 24 hours, according to CoinMarketCap.
BTC, on the other hand, has failed to break through its seven-day price levels, with the Bitcoin price down over 1.5 percent at the time of writing.