Bitcoin Price Analysis: BTC Bullish Divergence Signals Rally Toward $62,000

Bitcoin (BTC) is flashing a textbook regular bullish divergence on the daily chart, signaling a potential structural trend reversal.

BTC May Bounce Toward $62,000

Bitcoin’s price action successfully printed lower lows through June, recently testing the $57,800 liquidity zone. However, its daily relative strength index (RSI) printed distinct higher lows, refusing to match the bearish momentum.

This deceleration reveals exhausted selling pressure as the bears lose steam in deep value territory, a technical signal known as “bullish divergence.” The selling momentum is thoroughly depleted, and the immediate path of least resistance points upward.

Should it happen, the primary short-term upside target rests at the 20-day exponential moving average (20-day EMA, the green wave) at around $62,000, confluent with psychological resistance around the $60,000–$62,000 area, in July.

A daily close above this short-term moving average will be crucial to confirm a broader shift in market structure and validate the divergence. In that case, further upside targets appear to be around the 50-day EMA (red) near $66,340 and the 100-day EMA (purple) near $70,000.

Bear Flag Risks Still Intact

Bitcoin’s broader bearish structure continues to point to a potential bear flag breakdown. The multi-month ascending channel, which acted as the flag portion of the setup, has already broken to the downside, suggesting that the dominant downtrend remains intact.

As a result, any short-term RSI-driven rebound toward the 20-day EMA near $62,000 should not be viewed as a confirmed bear-market reversal. Instead, it may simply mark a dead-cat bounce or a textbook retest of former channel support, now acting as resistance.

A failure to reclaim this zone would strengthen the bearish continuation case and increase the risk of a deeper decline toward the flag’s measured downside target near $51,400.