On April 18, 2025, a notable technical signal emerged in the Bitcoin market, as highlighted by Trader Tardigrade on Twitter. The Money Flow Index (MFI) for Bitcoin displayed a hidden bullish divergence, a pattern that has historically preceded significant upward price movements. At 10:00 AM UTC on April 18, 2025, Bitcoin's price was recorded at $65,000, with the MFI registering at 60, indicating a potential shift in market momentum (Source: CoinMarketCap). This signal is particularly noteworthy because it has been observed at the onset of every major parabolic move in Bitcoin's history, suggesting a possible repeat scenario (Source: Trader Tardigrade, Twitter). The MFI divergence was accompanied by a trading volume of 2.3 million BTC over the past 24 hours, a 15% increase from the previous day's volume of 2 million BTC (Source: CoinGecko). This surge in volume further supports the bullish sentiment indicated by the MFI.

The trading implications of this MFI signal are significant for traders. Following the signal's appearance, Bitcoin's price increased by 3% within the next 24 hours, reaching $66,950 by 10:00 AM UTC on April 19, 2025 (Source: CoinMarketCap). This price movement was mirrored across multiple trading pairs, with BTC/USD showing a similar 3% increase, while BTC/ETH saw a 2.5% rise during the same period (Source: Binance). The on-chain metrics also reflected this bullish trend, with the number of active addresses increasing by 10% to 1.2 million on April 18, 2025, indicating heightened market participation (Source: Glassnode). Traders should consider this signal as a potential entry point for long positions, especially given the historical precedent of MFI divergences leading to substantial gains.

Technical indicators further corroborate the bullish outlook suggested by the MFI. The Relative Strength Index (RSI) for Bitcoin stood at 55 on April 18, 2025, indicating that the asset was not yet overbought and had room for further upward movement (Source: TradingView). The Moving Average Convergence Divergence (MACD) also showed a bullish crossover on the same day, with the MACD line crossing above the signal line, reinforcing the positive momentum (Source: TradingView). The trading volume, as mentioned earlier, increased by 15% to 2.3 million BTC, which is a strong indicator of market interest and potential for continued price appreciation (Source: CoinGecko). These technical indicators, combined with the MFI signal, provide a robust case for traders to consider entering long positions in Bitcoin.

Frequently Asked Questions:
What is the Money Flow Index (MFI) and how does it work? The Money Flow Index (MFI) is a momentum indicator that measures the inflow and outflow of money into a security over a specific period. It ranges from 0 to 100 and is used to identify overbought or oversold conditions. A hidden bullish divergence occurs when the price makes a higher low, but the MFI makes a lower low, suggesting underlying strength in the market.

How can traders use the MFI signal for Bitcoin trading? Traders can use the MFI signal as a potential entry point for long positions. When a hidden bullish divergence is observed, it suggests that the market may be poised for an upward move. Traders should monitor other technical indicators and on-chain metrics to confirm the signal before making trading decisions.

What are the risks associated with trading based on the MFI signal? While the MFI signal has historically preceded significant price movements, it is not foolproof. Traders should be aware of the risks, including market volatility and the possibility of false signals. It is crucial to use risk management strategies, such as setting stop-loss orders, to mitigate potential losses.