Bitcoin Hidden Bullish Divergence?
This idea is meant to serve as a little hopium as there are some things we see on Bitcoin's chart that are appearing to show weakness. That idea might be for a post in the near future but for now in the short term we have what might be a fractal in a larger version of previous hidden bullish divergence that played out July 27 to July 30. The third day of that hidden bullish divergence played out with a double digit move to the upside.
Well, we are now officially fresh into day 3 of what appears to be even more hidden bullish divergence here again on the 4 hour chart. Keep in mind that this is only discernable on the 4 hour time frame. So there is risk here. Until there is divergence showing on multiple time frames, it makes this only somewhat reliable although the 4 hour is traditionally a very trade friendly time frame.
At the very least a continued bounce to retest $45918 is in the cards and this is an area where I expect much resistance. However, a break and hold above this price level could very well lead to this bullish idea playing out.
For the bearish scenario one will want to keep an eye on the $43558 price level. If this is broken on both the 4 hour and daily chart it could be the beginning of a possible deeper pullback in Bitcoin.
Well, we are now officially fresh into day 3 of what appears to be even more hidden bullish divergence here again on the 4 hour chart. Keep in mind that this is only discernable on the 4 hour time frame. So there is risk here. Until there is divergence showing on multiple time frames, it makes this only somewhat reliable although the 4 hour is traditionally a very trade friendly time frame.
At the very least a continued bounce to retest $45918 is in the cards and this is an area where I expect much resistance. However, a break and hold above this price level could very well lead to this bullish idea playing out.
For the bearish scenario one will want to keep an eye on the $43558 price level. If this is broken on both the 4 hour and daily chart it could be the beginning of a possible deeper pullback in Bitcoin.
Related publications
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.