Analyst sees Bitcoin bottom on weekly chart at $79.000

Crypto analyst CryptoJelleNL sees a so-called bullish divergence forming on Bitcoin’s weekly chart, precisely at the level of the previous cycle top. According to him, this pattern points to a possible bottom around the current price of $79.000, but he warns that most investors will still let the opportunity slip.

Bitcoin is available at OKX and Bybit.

In short:

• CryptoJelleNL signals a bullish divergence on the Bitcoin weekly chart around $79.000
• The current level coincides with the top of the previous market cycle, a historically strong support level
• The analyst compares the situation with September 2020, when a clear bottom was also difficult to buy

Bottom at previous cycle top

The accompanying chart shows that the Bitcoin price fell back to just above the previous cycle high, around the $65.000 to $70.000 zone, while the momentum indicator on the weekly chart showed a higher low. That difference between price and indicator is known as a bullish divergence and is often seen by analysts as a possible recovery signal.

CryptoJelleNL points to the similarity with September 2020. At that time, Bitcoin retested the previous all-time high and it seemed to many investors as if the market was about to collapse. What followed was one of the sharpest rises in the coin’s recent history.

Why such bottoms are hard to buy

The analyst argues that the most obvious bottoms are in practice the hardest to buy. According to him, the scenario that many label as “too obvious” will also now lead to doubt when it actually unfolds.

“Too obvious does not exist,” he writes. He expects that most investors will also hesitate with this signal, no matter how clear the pattern appears on paper. Meanwhile, the Bitcoin price stands at $79.400 at the time of writing, down 0.6% in the past 24 hours.

Whether the bottom has indeed been set will become clear in the coming weeks. The options market is pricing in a wide price range for September, indicating that there is still much uncertainty among professional traders about the further direction.