Someone on Twitter sent me a chart showing Bearish Divergence on the Weekly for BTC and asked me to analyze it.
(hopefully this link shows the chart)
pbs.twimg.com/media/GlfGipMWQAAoV2d?format=jpg&name=large---
My response is below.
---
This is a really good question!
Caught me off guard for a second and I had to really analyze it.
That chart assumes we’re at the end of the cycle, so its showing bearish divergence prematurely in Mar ’25.
But the fractal it’s being compared to shows divergence with the peak in Nov ’21.
Here’s the correct way to draw the trends.
If you draw from the bear market low to current date, you see we are just getting warmed up.
This cycle is mimicking 2017 as I’ve mentioned a lot over the past year. I marked where we are so you can see the Feb - Mar ’21 dip in RSI.
Imagine tapping out right before the moonshot!
It’s easy to get caught off guard with that chart, as the fractals from ’21 and ’25 on the RSI do look strikingly familiar, but notice how the right shoulder on the RSI falls in Nov 21’ , but the right shoulder on the RSI in Dec ’24 is going higher, pointing to the RSI following the ’17 uptrend.
I wonder if the person who made that chart actually thought that was the correct way to analyze the chart, or if that’s just a troll bear-posting.
I could see someone like CredibleCrypto or an XRP-maxi posting that.
(hopefully this link shows the chart)
pbs.twimg.com/media/GlfGipMWQAAoV2d?format=jpg&name=large---
My response is below.
---
This is a really good question!
Caught me off guard for a second and I had to really analyze it.
That chart assumes we’re at the end of the cycle, so its showing bearish divergence prematurely in Mar ’25.
But the fractal it’s being compared to shows divergence with the peak in Nov ’21.
Here’s the correct way to draw the trends.
If you draw from the bear market low to current date, you see we are just getting warmed up.
This cycle is mimicking 2017 as I’ve mentioned a lot over the past year. I marked where we are so you can see the Feb - Mar ’21 dip in RSI.
Imagine tapping out right before the moonshot!
It’s easy to get caught off guard with that chart, as the fractals from ’21 and ’25 on the RSI do look strikingly familiar, but notice how the right shoulder on the RSI falls in Nov 21’ , but the right shoulder on the RSI in Dec ’24 is going higher, pointing to the RSI following the ’17 uptrend.
I wonder if the person who made that chart actually thought that was the correct way to analyze the chart, or if that’s just a troll bear-posting.
I could see someone like CredibleCrypto or an XRP-maxi posting that.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.