Bitcoin’s hidden bullish divergence could shock the bears

Although things in the cryptocurrency market are looking anything but bullish, Bitcoin (BTC) has demonstrated a hidden bullish divergence indicator that could shock the bears and turn the tide for the flagship decentralized finance (DeFi) asset.

Indeed, Bitcoin may be gearing up for its next major move after confirming a hidden bullish divergence on the weekly timeframe, which is visible on both the price action and the relative strength index (RSI), according to an analysis by popular crypto analyst Matthew Hyland on September 15.

Specifically, the weekly BTC/USD chart shows that, despite recent consolidation in the $110,000 – $120,000 range, the original crypto asset has continued to hold higher lows in price. Meanwhile, the RSI – a key momentum oscillator – formed a series of lower lows during the same period.

Why the hidden bullish divergence matters

This discrepancy between the indicator and the actual price trend is what traders describe as a hidden bullish divergence. Unlike regular bullish divergence, which often points to a potential reversal, hidden bullish divergence is generally seen as a continuation pattern, indicating that the prevailing uptrend is likely to resume.

At the same time, Bitcoin’s position in the broader cycle amplifies the significance of this setup. Following a strong run-up earlier this year, BTC entered a cooling-off phase, but buyers repeatedly defended key support levels. By confirming the divergence on the weekly timeframe, Bitcoin may be signaling renewed strength ahead.

Historically, such divergences have preceded substantial price expansions. Analysts point out that when momentum indicators lag while price holds or trends upward, it often means that sellers are losing control despite short-term pressure. In this case, BTC maintaining support above the $110,000 zone reinforces bullish structure.

Currently, Bitcoin is changing hands at the price of $115,069.93, which suggests a decline of 0.81% in the last 24 hours, a gain of 2.83% across the previous seven days, and a 2.13% drop on its monthly chart, according to the latest data.

Overall, the hidden bullish divergence adds weight to the argument that Bitcoin’s bull market is intact. If the pattern plays out as expected, BTC could be on the verge of its next leg higher, potentially shocking skeptics who anticipated a deeper correction.