Bitcoin Seen Entering Range as HYPE Rally Faces Momentum Divergence Test

Bitcoin Seen Entering Range as HYPE Rally Faces Momentum Divergence Test

N
News Editor
2026-09-07 09:31:32
An invited analysis published by Odaily says Bitcoin has extended the rebound that began from its July 1 low, forming a seven-leg advance on the daily chart and completing its first upward consolidation zone, or pivot A. The note argues that after confirming "endpoint 5," BTC has shifted into a correction-and-rebound phase, while overbought readings and top signals from the author's in-house quantitative models suggest a 2-3 week high-level range is now the more likely path. In that scenario, the market would spend time building a second upward pivot, labeled pivot B. The same report also reviews HYPE, saying the token's move from its Aug. 2 low of $51.11 has already extended into the departure leg from a second pivot on the 4-hour chart. According to the analysis, the next directional cue will come from comparing the strength of that departure leg with the earlier entry leg: if momentum divergence appears, the current uptrend may be nearing completion; if not, the rally could continue after a period of consolidation. Odaily's piece also disclosed one completed BTC short-term trade from last week. Using 1x leverage, the trade generated roughly 4.45%, which the author said supported the practical effectiveness of a combined signal from a "spread trading model" and a "momentum quant model."

Odaily said in an invited market analysis that Bitcoin has continued the rebound structure that started from the July 1 low, with the daily chart now showing a seven-leg advance and the completion of the first upward pivot, labeled pivot A. The report argues that after "endpoint 5" was confirmed, the market moved into a correction-and-rebound phase. With top signals from the author's quantitative models and overbought readings appearing at the same time, the piece says Bitcoin is more likely to enter a high-level range for the next two to three weeks as it builds energy for a second pivot, or pivot B.

Bitcoin Seen Entering Range as HYPE Rally Faces Momentum Divergence Test 2

The analysis says medium-term positioning remains flat because the validity of a trend reversal has not yet been confirmed. For short-term trades, it proposes acting around support and resistance levels, using signals shared by Chan theory structure analysis and the author's in-house quantitative models to switch between long and short trial setups.

For HYPE, the note says the 4-hour advance from the Aug. 2 low of $51.11 has already extended into the departure leg from a second pivot, called pivot B. The next key issue, according to the report, is whether momentum divergence appears when that departure leg is compared with the entry leg. That comparison will help determine whether the current rally is ending. The article also warns that technical indicators already show overbought conditions, making aggressive chasing risky.

The author also reviewed a BTC short-term long trade completed last week. Odaily's article says the trade was executed according to plan and returned about 4.45%, which the author described as a live-market validation of the combined signals generated by the "spread trading model" and the "momentum quant model."

BTC daily structure points to a completed first upward pivot

The article says that since rebounding from the July 1 low of $57,820, BTC has clearly formed a seven-leg rising structure from (0-1) through (6-7) on the daily chart. Among those moves, legs (1-2), (2-3), and (3-4) overlap and together form the first upward pivot, pivot A. Its departure leg, marked (4-5), was confirmed to have ended around $81,500.

The report lays out three main conclusions from pivot A. First, the rebound strength in departure leg (4-5) was noticeably stronger than the entry leg (0-1), and the two did not show momentum divergence. Second, the author's self-built quantitative system showed a bearish crossover in the dual signal lines of the "momentum quant model," while the "spread trading model" triggered a top warning shown as white dots on the chart. The article says the combination of those signals points to an overbought market. Third, after "endpoint 5" was confirmed, the market already printed a correction leg (5-6) and is now running through rebound leg (6-7).

Bitcoin Seen Entering Range as HYPE Rally Faces Momentum Divergence Test 3

Based on that structure, the piece says the more likely scenario from "endpoint 5" onward is a high-level sideways range lasting two to three weeks. In that view, bulls would use broad swings to shake out profit-taking built up during the earlier sharp rise, while randomly constructing a second upward pivot, pivot B, inside the trading box. Once pivot B is complete, the report says BTC may begin another move higher out of that pivot.

BTC outlook for the week centers on endpoint 7

The core view for this week is that Bitcoin is likely to trade in a box range, with close attention on where daily-chart "endpoint 7" eventually tops out.

Odaily's article lists the following resistance areas:

  • First resistance zone: $81,700 to $82,850
  • Second resistance zone: around $84,500
  • Third resistance zone: around $90,000

The support areas listed in the report are:

  • First support zone: $73,500 to $75,000
  • Second support zone: $67,300 to $69,100

Medium-term stance stays flat

The report says BTC has already broken through the "bull-bear channel" in the position-monitoring model, changing the short-term market structure. But the pullback confirmation that should follow a breakout has not been completed, so the effectiveness of any trend reversal is still unconfirmed. Because the signal sequence is not yet closed, the author keeps medium-term positioning at zero.

Bitcoin Seen Entering Range as HYPE Rally Faces Momentum Divergence Test 4

Short-term plans use 30% position sizing

For short-term trading, the article suggests using roughly 30% position size, with a stop-loss set in advance, and looking for spread-trading opportunities around support and resistance on 30-minute and 60-minute time frames.

It then lays out two plans:

  • Plan A: test a small long near strong support. If BTC falls back to the first or second key support area, forms a clear stabilization pattern, and the quantitative model issues a bottom signal at the same time, traders may open a long position of around 30%. The article says an initial stop-loss should be placed immediately. Positions can then be reduced and closed near important resistance if model signals line up.
  • Plan B: test a small short near strong resistance. If BTC rises into a key resistance zone, shows clear rejection, and the quantitative model issues a top signal at the same time, traders may open a short position of around 30%. An initial stop-loss is also required here, and profits can be taken gradually if price pulls back toward key support with confirmation from model signals.

HYPE enters the departure leg from a second pivot on the 4-hour chart

The article says HYPE's advance from the Aug. 2 low of $51.11 can be divided into an 11-leg rising structure on the 4-hour chart, from (72-73) through (82-83).

For pivot A, the report says legs (73-74), (74-75), and (75-76) overlap and form the first upward pivot. It compares the entry leg (72-73) with the departure leg (78-79) and says the departure leg showed stronger upward momentum, with no momentum divergence between the two. On that basis, the author argues that after leg (78-79) ended, HYPE still had room to move higher after a period of consolidation.

For pivot B, the report says legs (79-80), (80-81), and (81-82) overlap and create the second upward pivot. Within that structure, leg (78-79) is treated as the entry leg and leg (82-83) as the departure leg. The article says the market is currently trading inside departure leg (82-83), and the main thing to watch next is how the strength of that leg compares with entry leg (78-79).

Bitcoin Seen Entering Range as HYPE Rally Faces Momentum Divergence Test 5

If momentum divergence appears when the departure leg ends, the article says the probability that the rally from "endpoint 72" has finished would rise sharply. If no divergence appears, the note says HYPE may continue the existing uptrend after a period of consolidation and print another high.

HYPE levels and trading plan for the week

The report lists the following key levels for HYPE:

  • First resistance: around $100
  • First support: $83 to $85
  • Second support: $77 to $80

The article says the core observation for this week is where departure leg (82-83) ends and whether, at that endpoint, its upward force shows momentum divergence against entry leg (78-79).

It then gives three short-term trading points:

  • For traders already holding longs opened earlier in the $50 to $52 area under the prior trading plan, the report suggests lifting the initial stop-loss to around $80 to lock in existing gains while continuing to hold.
  • For traders without positions, the note says a small long can be considered if price pulls back to the key $83 to $85 support zone, stabilizes effectively, and shows a clear bullish signal. A stop-loss should be set and enforced.
  • As a risk reminder, the article says HYPE has accumulated a heavy layer of profit-taking after its recent run-up, while multiple technical indicators are already in overbought territory. It warns against chasing the move at current levels and flags the risk of a short-term pullback.

BTC trade review: one 1x leveraged long returned about 4.45%

In its review of trades from Aug. 31 to Sept. 6, the article says the author followed the preset trading plan and completed one BTC short-term long based on signals from the "spread trading model" and the "momentum quant model." Total profit was about 4.45%.

Bitcoin Seen Entering Range as HYPE Rally Faces Momentum Divergence Test 6

The entry logic had two parts. First, BTC had already completed a full correction structure, and when price dropped to the area above $76,000 it showed signs of stabilization, with the candlestick pattern forming what the article called a bottom fractal. Second, the "momentum quant model" produced a bullish momentum divergence at the bottom, while the "spread trading model" also flashed a bottom-up signal. Based on that multi-factor signal alignment, the report says a 30% long position was opened at $77,388.

The exit logic also had two parts. First, BTC showed signs of stalling around $82,850, where the candlestick pattern formed what the article called a top fractal. Second, the "spread trading model" released repeated top warnings, marked by white and green dots, after which the blue signal band crossed below the green skyline and aligned with the "momentum quant model" in a top signal. Based on that confluence, the article says the full position was closed near $80,836.

The author's summary is that the trade generated about 4.45% in profit.

Risk control note focuses on trailing stop discipline

The article ends with several trading rules. It says an initial stop-loss should be set immediately after entry. Once profit reaches 1%, the stop-loss should be moved up to the entry cost to protect principal. Once profit reaches 2%, the stop-loss should be moved up to the level that locks in a 1% gain. After that, each additional 1% gain in price should be matched by a 1% increase in the stop-loss level to help protect and lock in profits dynamically.

The author adds that financial markets change quickly, and all views, analytical models, and trading strategies in the article come from personal technical analysis and are only for use as a personal trading log. The piece says it does not constitute investment advice or an operational basis for decisions and ends with a standard risk warning that markets carry risk and decisions should be made with caution.

This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan.
200

Disclaimer:

The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.

Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.