Bitcoin Weekly Chart Shows Rare Bullish Divergence, Analysts Eyeing $90,000 Target

BlockBeats News, June 8th. The Bitcoin weekly chart has shown the second bullish divergence signal in history, triggering market expectations for a new round of price surge. Analysts believe that if history repeats itself, Bitcoin is expected to challenge the $90,000 resistance level.

Data shows that the Bitcoin weekly RSI indicator has bounced back above 34 after dropping below oversold levels, while the price has fallen from $75,800 to around $63,000 during the same period. Despite the price continuing to set new lows, the momentum indicator has formed higher swing lows, creating a typical bullish divergence indicating weakening selling pressure.

The last similar signal appeared after the 2022 FTX crash, when Bitcoin started its uptrend from around $15,500 and eventually reached about $126,200, marking a cumulative increase of over 700%.

From a technical perspective, analysts believe that Bitcoin's first key target is near the 50-week moving average, around $91,800. At the same time, Bitcoin is currently trading around the 200-week moving average of about $62,000, a level that has served as a significant bottom area during the bear markets of 2015, 2018, and 2020.

Cryptocurrency analyst Michael van de Poppe stated that the 200-week moving average is an ideal long-term accumulation area, but bulls need to first overcome the resistance zone between $64,000 and $65,000. If successful, Bitcoin could further test levels between $71,500 and $73,000, potentially filling the CME gap near $79,000, with the next major resistance zone above $90,000.

However, downside risks remain. Reports suggest that Bitcoin is still in a bear flag breakdown phase on the weekly chart. If this pattern continues to play out, the theoretical target for BTC could still be below $50,000. Analysts believe that only by reclaiming support along the lower edge of the bear flag can the market effectively mitigate further downside risks.