Bearish Divergence| Rising Wedge| Volume Climax| .382 Fibonacci Hello Traders,
Today’s chart update will be on the immediate trend of BTC where we have bearish divergences forming at key structural resistance in a rising wedge formation, which serves as a bearish pattern.
Points to consider,
- Immediate trend bullish
- Local support at $9470.00
- Structural resistance being tested
- Stochastics in upper regions
- RSI putting in higher lows
- Volume climax evident
BTC has been putting in clear higher lows with evident S/R flips, if current local support holds; this will be another S/R flip confirmation. Structural resistance is a key level, a break will increase the trends parabola as this will put in a macro higher high.
The stochastics is currently in the upper regions, can stay trading here for an extended period of time, however lots of stored momentum to the downside. RSI is clearly diverging from price by putting in lower highs, putting more emphasis on the bearish divergence.
BTC has a clear volume climax bar, signalling a local top may just be in as buyers become exhausted. If volume however continues to creep up, this will increase BTC’s probability of continuing this current bullish immediate trend.
Overall, in my opinion, BTC needs to remain above local support in this formation for a bullish bias. A break of local support will mean breaking outs of the rising wedge which serves as a bearish pattern. The .382 Fibonacci will then be the likely target as this area currently has an open GAP on the futures chart.
What are your thoughts?
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And remember,
“The expectation that you bring with you in trading is often the greatest obstacle you will encounter.”
― Yvan Byeajee
