Expect Chop: Bitcoin Bullish and Bearish Divergences Everywhere
First up is the hourly linear Bitcoin Bitfinex chart.
Yesterday we were eyeing several potential technical formations that were shaping up. A bullish flag, a bearish flag and a symmetrical triangle all in order shortest duration to the longest. Shortly after my post yesterday, price failed to get back above 8/21 hour turquoise and pink EMA's and proceeded to break all the previous formations bearishly. The red 200 hour moving average was broken as well.
Price came down on a big red candle about $266 with a low of $8,937 and then closed above that black uptrending line which I have drawn today. The black line is the bullish support trend line, which has been in place since April 1st, which you will be able to see a bit later on the daily chart.
Price has since rode that line back up slightly to a close of $9,056 at 5am EST, before pushing lower and retesting that purple horizontal support at $8,912. Now BTC is creeping back up to retest that black uptrending line as resistance where it is currently staying right beneath the line. If price fails here, I believe the next stop is to fall back to the yellow downtrend line at about $8,750.
Volume has dropped off the past few hours and many are most likely waiting for the next big move. Yesterday I was leaning more bullishly with all the strength the market, but today I leaning back towards the bearish play.
I am seeing a some slight bullish divergence over the past 11 hours, which I have marked with lime green lines on the price and RSI chart, however overall the trend and RSI have both been heading lower.
However, I have also marked with pink lines on the price and RSI charts that show even more recent hidden bearish divergence that is also taking place. Overall I think price needs to head down deeper into the oversold territory here before price gets a legitimate reversal. Daily chart will give more clues.
On the daily linear Bitcoin Bitfinex chart, things certainly look they are about to roll over again. What a difference at day makes.
Price is failing today at the 8 day turquoise EMA, unless it closes back above $9,100. That black uptrendline from the first of April is also now in danger of being broken as well.
But the good news is there is a lot of support in this $8,900 to $8,500 area and with the bullish sentiment still lingering, the longer this thing can head sideways and reset some of the indicators, bigger and more bouncy that platform will be to launch off of.
If price does continue to move lower over the next 24 hours, I think the target is going to be that yellow line at $8,750. There’s 3 past daily wicks that have gone down through that yellow line and stopped price from falling, so if you are potentially looking for a trade that may be a good level to enter.
I am also still seeing some hidden bullish divergence where price is providing higher lows the past few days and the RSI is giving lower lows. I wish the RSI was a bit lower for price to reset and rebound, but that might just be done through this continued chop and turmoil in the market.
MACD is looking bearish, so this thing is really a mystery which way it will break.
One more chart which is still the daily Bitcoin chart zoomed out more. I wanted to highlight only the pink and green lines on the price, RSI, MACD charts.
The pink lines are showing bullish divergence on the long term and the green lines are showing hidden bearish divergence still. Another example of how unclear which way this thing could go, but we will continue to read the tea leaves accordingly.
Yesterday we were eyeing several potential technical formations that were shaping up. A bullish flag, a bearish flag and a symmetrical triangle all in order shortest duration to the longest. Shortly after my post yesterday, price failed to get back above 8/21 hour turquoise and pink EMA's and proceeded to break all the previous formations bearishly. The red 200 hour moving average was broken as well.
Price came down on a big red candle about $266 with a low of $8,937 and then closed above that black uptrending line which I have drawn today. The black line is the bullish support trend line, which has been in place since April 1st, which you will be able to see a bit later on the daily chart.
Price has since rode that line back up slightly to a close of $9,056 at 5am EST, before pushing lower and retesting that purple horizontal support at $8,912. Now BTC is creeping back up to retest that black uptrending line as resistance where it is currently staying right beneath the line. If price fails here, I believe the next stop is to fall back to the yellow downtrend line at about $8,750.
Volume has dropped off the past few hours and many are most likely waiting for the next big move. Yesterday I was leaning more bullishly with all the strength the market, but today I leaning back towards the bearish play.
I am seeing a some slight bullish divergence over the past 11 hours, which I have marked with lime green lines on the price and RSI chart, however overall the trend and RSI have both been heading lower.
However, I have also marked with pink lines on the price and RSI charts that show even more recent hidden bearish divergence that is also taking place. Overall I think price needs to head down deeper into the oversold territory here before price gets a legitimate reversal. Daily chart will give more clues.
On the daily linear Bitcoin Bitfinex chart, things certainly look they are about to roll over again. What a difference at day makes.
Price is failing today at the 8 day turquoise EMA, unless it closes back above $9,100. That black uptrendline from the first of April is also now in danger of being broken as well.
But the good news is there is a lot of support in this $8,900 to $8,500 area and with the bullish sentiment still lingering, the longer this thing can head sideways and reset some of the indicators, bigger and more bouncy that platform will be to launch off of.
If price does continue to move lower over the next 24 hours, I think the target is going to be that yellow line at $8,750. There’s 3 past daily wicks that have gone down through that yellow line and stopped price from falling, so if you are potentially looking for a trade that may be a good level to enter.
I am also still seeing some hidden bullish divergence where price is providing higher lows the past few days and the RSI is giving lower lows. I wish the RSI was a bit lower for price to reset and rebound, but that might just be done through this continued chop and turmoil in the market.
MACD is looking bearish, so this thing is really a mystery which way it will break.
One more chart which is still the daily Bitcoin chart zoomed out more. I wanted to highlight only the pink and green lines on the price, RSI, MACD charts.
The pink lines are showing bullish divergence on the long term and the green lines are showing hidden bearish divergence still. Another example of how unclear which way this thing could go, but we will continue to read the tea leaves accordingly.
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