Bitcoin (BTC) is setting the stage for a potential breakout in its price, according to two key indicators.
In a recent analysis on X (formerly Twitter), renowned trader Roman outlined a case for a bullish trend continuation in BTC/USD.
Despite the disappointment felt by hodlers throughout much of June, Bitcoin remains a strong prospect when looking at higher timeframes.
Some argue that BTC’s price action is simply consolidating below its all-time highs, displaying classic behavior of a bull market that can last for several months.
However, Roman believes that a return to the positive momentum seen earlier might be just around the corner.
Pointing to the Relative Strength Index (RSI) and Bollinger Bands on the weekly chart, he anticipates an upward squeeze as the next logical move for BTC’s price action.
“We are now forming a 3rd bullish divergence between Price and RSI while many are capitulating & calling for lower,” he wrote on June 21.
An accompanying chart displayed RSI making lower lows while price made higher lows. This, combined with narrowing Bollinger Bands, could result in significant volatility.
In a subsequent post, Roman suggested that the target for such an upward move could surpass the previous all-time high.
“You all should be paying attention to this 1W close,” he told X subscribers on June 22.
Bitcoin bulls face a reality check as other BTC price predictions struggle to materialize on time.
With $80,000 in June having just one week left, and another prediction from May forecasting $95,000 in a single blitz breakout, traders like Daan Crypto Trades remain optimistic about BTC’s potential.
He added that macroeconomic conditions, such as record highs in United States equities and dropping bond yields, bode well for strong BTC price performance.
At the time of writing, BTC/USD traded at around $64,300, according to data from Cointelegraph Markets Pro and TradingView.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.