Is the correction in bitcoin over? Watch out for the 'hammer' and bullish divergences

We do not have a return figure as such yet, but there are small details that invite optimism in bitcoin after a crash from the annual and all-time highs ($ 65,520).

The 'hammers' occur quite frequently in the markets. It consists of a single candle, which typically occurs at the end of a prolonged corrective phase and often takes place near key supports. Interpreting this as a turning point of the trend, going from bearish to bullish. Or at least we would be anticipating the start of a significant short-term rebound. We are talking about a session in which the price falls sharply for much of the day and then recovers and closes near the highs, or in highs. But leaving that a long lower wick underneath. The volume traded is also usually considerably higher than that of the previous sessions.

And if at the same time it coincides with the fact that some of the main oscillators at the moment (RSI, stochastic, etc.) show extreme oversold readings, all the better. And this is what the price of the future of bitcoin drew us in the session on Tuesday of last week after marking a low at $ 28,800 and closing at $ 32,885.

To this we must add the bullish divergences between the price and the stochastic momentum oscillator. These are clear and tend to bring significant rebounds in the short term. That said, everything suggests that bitcoin can attack at any time the important resistance it has at $41,335: June highs and last decreasing high.