Bitcoin Goes Oversold - Watch For Bullish Divergence With RSI
Bitcoin has officially made a very quick trip from overbought, all of the way to oversold. The bearish divergence on the 6-hour chart with overbought RSI was the leading indicator this time, although it was not seen on the 4-hour. the daily also hit overbought for the first time in ages.
Now that we are oversold, I am looking for price to either continue up or come down for one more dip and create a bullish divergence - my favorite trade and bottom signal. This would require a higher low on RSI and a lower low on price - the idea is drawn above. I have shared these tens of times with you and they have an extremely high hit rate.
I will be watching.
Now that we are oversold, I am looking for price to either continue up or come down for one more dip and create a bullish divergence - my favorite trade and bottom signal. This would require a higher low on RSI and a lower low on price - the idea is drawn above. I have shared these tens of times with you and they have an extremely high hit rate.
I will be watching.
scott.melker@texaswestcapital.com
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