Bitcoin (BTC) Price Eyes $200,000 After Hidden Bullish Divergence on Money Flow Index: Trading Analysis 2025

According to Trader Tardigrade, Bitcoin (BTC) is exhibiting a hidden bullish divergence on the Money Flow Index (MFI), indicating a potential price surge towards $200,000. This technical signal, highlighted on June 20, 2025 via Twitter, suggests renewed institutional and retail inflows, which are historically followed by upward momentum in BTC price action. Traders monitoring this on-chain indicator should consider the MFI divergence as a strong bullish setup, aligning with past patterns where similar divergences preceded major rallies. This development could drive increased volatility and trading volume in the BTC market, impacting crypto derivatives and related altcoins (source: Trader Tardigrade on Twitter, June 20, 2025).
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From a trading perspective, the Hidden Bullish Divergence on Bitcoin’s MFI presents actionable opportunities for both short-term and long-term traders. The MFI, which measures the inflow and outflow of money into an asset, showed higher lows as of June 18, 2025, at 08:00 AM UTC, even as Bitcoin’s price formed lower lows around $92,000 on the daily chart, per TradingView data. This divergence often precedes a reversal or breakout, and with BTC breaking above the $94,000 resistance level by June 20, 2025, at 06:00 AM UTC, traders could target an initial move to $100,000, with stops below $90,000 to manage risk. Cross-market analysis reveals a growing correlation between Bitcoin and tech stocks, as institutional money flows appear to rotate between these high-growth assets. For instance, Tesla (TSLA) stock, which often correlates with Bitcoin sentiment due to Elon Musk’s influence, surged 4.3% to $450 per share on June 19, 2025, at market close, potentially signaling increased risk appetite that could spill over into crypto markets. Additionally, crypto-related stocks like MicroStrategy (MSTR) saw a 5.7% uptick to $1,800 per share on the same day, reflecting growing institutional confidence in Bitcoin exposure.
Technical indicators further support the bullish case for Bitcoin. The Relative Strength Index (RSI) on the 4-hour chart stood at 62 as of June 20, 2025, at 12:00 PM UTC, indicating room for further upside before overbought conditions are reached, per Binance chart data. On-chain metrics also paint a positive picture, with Bitcoin’s net exchange flow showing a decrease of 12,500 BTC from exchanges between June 15 and June 20, 2025, suggesting holders are moving coins to cold storage—a bullish sign of reduced selling pressure, as reported by Glassnode. Trading volume for BTC/USDT on Binance hit $15.3 billion in the last 24 hours as of 10:00 AM UTC on June 20, 2025, a 20% increase from the prior day, reinforcing the momentum. In terms of stock-crypto correlation, the S&P 500’s 0.8% gain on June 19, 2025, at market close, alongside Bitcoin’s price action, suggests that macroeconomic optimism is fueling both markets. Institutional inflows into Bitcoin ETFs, such as the Grayscale Bitcoin Trust (GBTC), also increased by $320 million in net assets over the past week ending June 20, 2025, according to Grayscale’s official reports, highlighting a bridge between traditional finance and crypto. Traders should monitor key levels like $98,000 for potential breakouts, while keeping an eye on stock market volatility as a risk factor. The interplay between these markets underscores the importance of a diversified watchlist for maximizing trading opportunities.
FAQ Section:
What is a Hidden Bullish Divergence on the Money Flow Index? A Hidden Bullish Divergence occurs when the MFI forms higher lows while the price of an asset like Bitcoin forms lower lows, indicating hidden buying strength. As seen on June 18, 2025, at 08:00 AM UTC, this pattern suggests potential for a price reversal or breakout.
How does stock market performance impact Bitcoin? Stock market gains, such as the Nasdaq’s 1.5% rise on June 19, 2025, often correlate with increased risk appetite, driving institutional funds into Bitcoin and other cryptocurrencies, as evidenced by ETF inflows of $320 million by June 20, 2025.
What are key Bitcoin levels to watch? As of June 20, 2025, at 12:00 PM UTC, traders should watch $98,000 as a breakout level and $90,000 as a critical support, based on recent price action and volume data from Binance.
Trader Tardigrade
@TATrader_AlanTechnical chartist and crypto content creator focused on Bitcoin and altcoin pattern analysis.