Bitcoin is positioning itself for a potential rally in the near term, with several on-chain indicators suggesting a possible rebound after weeks of correction. Analysts are increasingly optimistic about the cryptocurrency’s prospects, pointing to a fresh bullish divergence pattern as a key driver of the expected rally. As whale activity ramps up, Bitcoin’s price could soon break through key resistance levels.
Technical Indicators Suggest Strong Rebound
On-chain analyst Javon Marks shared his analysis on the social platform X, indicating a positive outlook for Bitcoin (BTC). Marks highlighted the formation of a bullish divergence pattern, which has historically signaled price rebounds despite recent downward pressure. He noted that while Bitcoin’s price has been falling, the relative strength index (RSI) is showing higher lows, signaling diminishing selling pressure.
“Bitcoin’s prices have responded positively to the Regular Bullish Divergence pattern, indicating that the bears are losing momentum and the bulls are gaining control,” Marks explained. He further emphasized that with rising optimism, Bitcoin’s price may soon see a sharp recovery, potentially bringing the cryptocurrency closer to the $100,000 mark.
Whales Strengthen Their Position
In addition to bullish technicals, rising whale activity is also contributing to the market’s positive sentiment. Institutional investors, particularly corporations with Bitcoin holdings, have been stepping in to scoop up discounted assets as prices dipped. Notable moves include Cantor Fitzgerald’s launch of a $2 billion Bitcoin financing business and Ark Invest’s purchase of 997 BTC within the past week.
This increased whale activity is seen as a sign of confidence in Bitcoin’s future, though some caution remains. There are concerns that Bitcoin could fall to $46,000 if its price dips below the 50-week moving average (MA), creating a potential support level to watch closely.
Leverage and Short Positions Fuel Market Tension
Further fueling market speculation, a Bitcoin whale recently opened a massive short position worth over $300 million, with an entry price of $84,040 and 40x leverage. Analysts suggest that this position could trigger a short squeeze if the market moves in the opposite direction, creating a potential catalyst for Bitcoin’s price rally.
As the market watches closely ahead of the Federal Open Market Committee (FOMC) meeting, Bitcoin’s bullish divergence pattern, combined with increasing whale activity, has investors hoping for a price surge in the near future.
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