BITCOIN SHOWS DIVERGENCE IN PRICE/MOMENTUM !! WATCH OUT...
Folks,
the past can tell us a lot of what to expect in the future. Of course we don't know what is going to happen. But you can prepare yourself and educating yourself in some scenarios.
We are trying to break out above the 200 day MA on the daily chart. Nothing new.
This situation has happened multiple times before.. Look at the circles.
Sometimes it fails and sometimes it succeed in breaking out.
What is it that you see different in when it fails and when it succeed?
What about the candles..
How does the oscillators behave. Momentum/RSI?? (my favorites)
Take that in to account in the recent price. We are trying to sustain the breakout now by trying to hold the support line.
From 4 to 7 august I see big white candles with volume behind it reaching the resistance (that's how you want to see price trying to break out).
and again at 9 august we see a breakout candle with volume BUT this last move is making higher highs in prices BUT it fails to make higher highs in the momentum.
What I have learned in my study is that momentum is the front runner of price. That means that the price ' often' NOT ALWAYS follows momentum.
This doesn't mean prices will fall 100%. NO!!
I just say to be careful and take into account that the chart is telling you things aren't going as natural as it should be when the price makes higher highs.
the past can tell us a lot of what to expect in the future. Of course we don't know what is going to happen. But you can prepare yourself and educating yourself in some scenarios.
We are trying to break out above the 200 day MA on the daily chart. Nothing new.
This situation has happened multiple times before.. Look at the circles.
Sometimes it fails and sometimes it succeed in breaking out.
What is it that you see different in when it fails and when it succeed?
What about the candles..
How does the oscillators behave. Momentum/RSI?? (my favorites)
Take that in to account in the recent price. We are trying to sustain the breakout now by trying to hold the support line.
From 4 to 7 august I see big white candles with volume behind it reaching the resistance (that's how you want to see price trying to break out).
and again at 9 august we see a breakout candle with volume BUT this last move is making higher highs in prices BUT it fails to make higher highs in the momentum.
What I have learned in my study is that momentum is the front runner of price. That means that the price ' often' NOT ALWAYS follows momentum.
This doesn't mean prices will fall 100%. NO!!
I just say to be careful and take into account that the chart is telling you things aren't going as natural as it should be when the price makes higher highs.
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