Bitcoin’s 3D Bullish Divergence: Could This Mark the End of Selling Pressure?

TLDR:

• Bitcoin’s 3D bullish divergence has historically preceded rallies between 45% and 89% in past cycles.
• Exchange Whale Ratio declining below recent peaks suggests large holders are not aggressively selling.
• RSI forming higher lows while price makes lower lows indicates weakening conviction among sellers.
• Horizontal support near $87K holds firm as stronger hands appear to be absorbing available supply. 

Bitcoin has printed a three-day bullish divergence as price formed lower lows while momentum indicators refused to follow. 

This technical disconnect emerges when selling pressure fades beneath the surface, historically signaling exhaustion rather than continuation of declines. 

Exchange data reinforces this view, with whale distribution metrics showing large holders are not aggressively selling at current levels near $87,000.

Historical Precedent Suggests Selling Exhaustion

The current divergence pattern has appeared twice before in Bitcoin’s recent history, each instance marking the end of downside pressure. 

Crypto analyst Crypto Tice observed that momentum failed to confirm price weakness, a signal that typically precedes absorption and bottom formation. Previous occurrences of this structure led to rallies of approximately 89%, 55%, and 45% as selling gave way to renewed demand.

The Relative Strength Index has been forming higher lows even as price established equal or lower lows. 

This behavior indicates weakening conviction among sellers and marks accumulation zones rather than breakdown points. When momentum diverges from price in this manner, it suggests the market is approaching a turning point where downside pressure becomes exhausted.

The horizontal support zone continues to hold despite repeated tests, demonstrating that stronger hands are absorbing available supply. Bitcoin’s compression into a tight range while momentum flattens and turns upward mirrors the exact setup seen before prior breakouts. 

Without momentum invalidation occurring, the structure points toward exhaustion of selling rather than preparation for further declines.

Whale Behavior Confirms Reduced Distribution Pressure

The Exchange Whale Ratio has been trending lower and stabilizing below recent peaks across major trading platforms. 

CryptoZeno highlighted that this declining metric suggests large holders are contributing less to exchange inflows relative to smaller market participants. When whales reduce their exchange deposits, it typically signals the end of active distribution phases.

The 30-day simple moving average of the whale ratio remains well below peak zones observed during aggressive selling periods in 2024. This divergence indicates recent volatility stems from short-term traders rather than coordinated whale distribution. Large holders appear to be holding positions rather than liquidating, a marked shift from behavior seen during previous correction phases.

The combination of technical divergence and reduced whale selling creates conditions consistent with exhaustion bottoms. If selling pressure has indeed ended, the market structure supports further upside once demand returns. 

The absence of aggressive distribution from large holders removes a significant source of downside pressure, allowing price to respond more readily to positive catalysts and renewed buying interest.

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