taking a look at our BTC/USD daily chart here ive realized that we have formed a bullish divergence! This pattern signals a bullish reversal from our current trend and can be identified from seeing lower highs on price action shown by the yellow trend line and then higher lows on the oscillator and i prefer to use the Stochastic RSI to identify these patterns. Now what this means is that at some point coming up soon we should see an explosive breakout from Bitcoin towards the upside (reversal from our current downtrend) in turn the market overall should get a significant move from this and we can expect everything to start running hot if this plays out! We do have some big hurdles to clear if this is true, we have the yellow downtrend resistance, resistance at a heavy level of 58.8K and then aswell as the bollinger bands midline which is currently resistance and finally very heavy resistance at the aprx 60K level. Now breaking through these is definitely possible its just a matter of how long and when, with some major momentum we could easily smash through a couple of these before possibly getting rejected, now even getting rejected isn't a bad thing it is normal and some of these levels will take more than one attempt to breakthrough. The MACD looks ready to boom in my opinion, we have seen multiple flat red cycles recently with not a ton of movement but we are now approaching the point of a bullish cross. We want to see on the histogram is a strong push into green territory with our bars making increases day after day showing that rise in bullish momentum! With the MA's we want to see separation with the blue on top pushing away from the orange making it more difficult to get a bearish cross. Not financial advice just my opinion!
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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.