Bitcoin weekly rare bullish divergence reappears, analysts focus on $90k target level

BlockBeats News, June 8 — The weekly chart of Bitcoin shows the second-ever bullish divergence signal in history, sparking market expectations for a new upward trend. Analysts believe that if history repeats, Bitcoin could challenge the $90k region.

Data shows that Bitcoin's weekly RSI indicator has rebounded above 34 after falling below the oversold level, while the price has dropped from approximately $75.8k to about $63k. The price continues to make new lows, but the momentum indicator forms higher lows, forming a classic bullish divergence, indicating selling pressure is weakening.

The last time a similar signal appeared was after the 2022 FTX collapse, when Bitcoin started rising from around $15.5k and eventually reached about $126.2k, with a total increase of over 700%.

On the technical side, analysts believe the first major target for Bitcoin is near the 50-week moving average, approximately $91.8k. Meanwhile, Bitcoin is still trading near the 200-week moving average of about $62k, a level that has repeatedly served as an important bottom during the 2015, 2018, and 2020 bear markets.

Crypto analyst Michael van de Poppe states that the 200-week moving average is an ideal long-term positioning area, but bulls need to first break through the resistance zone of $64k to $65k. If successful, Bitcoin could further rise to $71.5k to $73k and ultimately fill the CME gap near $79k, with the next major resistance area above $90k.

However, downside risks still exist. Reports indicate that Bitcoin is currently in a weekly bear flag pattern that has broken down. If this pattern continues to play out, BTC's theoretical target could fall below $50k. Analysts believe that only by reclaiming support along the bear flag can the market effectively mitigate further downside risk.