This Bitcoin Pattern Appeared Before the Last Two Bottoms

Bitcoin (BTC) may be approaching another critical inflection point as a potential divergence is forming on its 3-day chart, a setup that closely resembles conditions seen near the previous two major market bottoms.

Indeed, while the price action remains choppy, momentum indicators, including those shared by popular cryptocurrency specialist CryptoJelleNL in an X post on December 16, are beginning to tell a different story, one that long-term traders tend to watch closely.

What Is a 3-Day Divergence?

A divergence occurs when price makes lower lows while momentum indicators, such as the relative strength index (RSI), fail to confirm the move. On higher timeframes like the 3-day chart, these signals are rare and typically develop slowly. But when they appear, they often precede meaningful trend shifts.

In Bitcoin’s case, similar 3-day divergences formed before the last two major cycle lows, marking points where downside momentum was exhausted even as price continued to probe lower levels.

Why This Signal Matters

Higher-timeframe divergences matter because they reflect structural changes in market behavior, not short-term noise. When momentum stops confirming price weakness over multi-day candles, it often signals that selling pressure is losing force beneath the surface.

This doesn’t guarantee an immediate reversal, but it often marks the transition phase where markets shift from impulsive downside to basing and accumulation.

Context: A Market Searching for Direction

Bitcoin has spent recent weeks oscillating between support and resistance zones, frustrating both bulls and bears. Volatility has compressed, and sentiment remains divided as traders debate whether the market is entering a deeper correction or preparing for continuation.

Divergence setups typically emerge during this exact kind of environment, in which confidence is low, narratives conflict, and price action appears indecisive. That’s also why these signals tend to go unnoticed until after the move has already begun.

What Comes Next

At the moment, Bitcoin is trading at $86,884.91, suggesting a 3.27% decline on the day, a dip of 3.78% across the week, and a loss of 9.74% accumulated over the past month, per the latest information.

A confirmed divergence alone doesn’t mark a bottom. Follow-through, reclaiming key levels, and improving structure are still required. However, the appearance of this setup shifts probabilities, especially when it aligns with historical precedent.

If momentum continues to stabilize while price holds above recent lows, Bitcoin could be entering the early stages of a larger basing process, similar to previous cycle transitions.

For now, this is a moment to pay attention, not to chase. When high-timeframe signals begin to repeat, markets are rarely as random as they appear.

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