Only a few days after the latest Bitcoin (BTC) “Golden Cross”, we are seeing a clear “Hidden Bullish Divergence” which suggests the coming breakout from a price wedge will be bullish.
On the chart below, we see that a higher low on price between May 11 and May 25. However, the RSI did not follow suit with a higher price high; and this is often recognized as a Hidden Bullish Divergence.
This type of divergence is said to signal a trend continuation; and in the recent case of Bitcoin, the trend has been up.
Furthermore, we see a very important event drawing closer on the Bitcoin chart: by end of June at the latest, we are likely to see Bitcoin squeezed between two trends and forced to break out one way or another.
The downtrend (red band) in particular is very important, as it represents multi-year resistance drawn all the way back from the 2017 price top.
Between the recent Golden Cross and this Hidden Bullish Divergence, we have some basis to expect a positive outcome in the upcoming breakout scenario.
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