Altcoin Daily
A weekly bullish divergence has printed on the Bitcoin chart for only the third time on record, with both prior instances marking absolute cycle bottoms. The signal joins a stack of bottom indicators that have been firing in recent weeks, including the percentage of BTC supply in profit, which the chart's author notes has flagged every prior bear-market low.
Why it matters
Weekly divergences are rare. Two prior occurrences on the same timeframe aligned with the 2018 and 2022 cycle lows, which is why the third print is drawing attention from technical analysts even though Bitcoin is still trading below the $73,000 level the analyst behind the chart called the line between chop and a confirmed bullish regime. Until price clears and holds that level, the divergence is a context-setting signal rather than a standalone trigger.
Market impact
The combination of a third-ever weekly bullish divergence with a supply-in-profit reading that has historically aligned with cycle lows does not guarantee a bottom, but it reframes the risk/reward for traders who had been treating the recent correction as a continuation. The next test is whether BTC can sustain above the prior support-turned-resistance zone and reclaim $73,000 on rising volume, the condition the analyst set for getting "very, very bullish."
Frequently asked questions
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What is a weekly bullish divergence on Bitcoin?
It occurs when BTC prints a lower low on the weekly chart while its momentum indicator (typically the RSI) prints a higher low, suggesting selling pressure is fading even as price makes new local lows.
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How many times has this signal fired before?
Two prior weekly bullish divergences appeared on Bitcoin's chart, and both aligned with absolute cycle bottoms in 2018 and 2022. The third just printed, which is why analysts are paying attention.
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What is the Bitcoin supply-in-profit metric?
It tracks the share of circulating BTC whose current price is above the price at which each coin last moved. Lower readings historically align with bear-market bottoms because most holders are sitting on losses.
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Does a bullish divergence guarantee a Bitcoin bottom?
No. Divergences are context-setting signals, not standalone triggers. Confirmation typically requires price reclaiming a key level on rising volume, in this case a sustained move above $73,000.
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Why is $73,000 the level to watch?
The analyst behind the chart flagged $73,000 as the threshold above which the structure shifts from rotation within a range to a confirmed bullish regime. Below it, the market is still chopping.
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