BitcoinShort
Bitcoin's Bearish Divergence(s)
PRICE ACTION
Is Bitcoin about to crash; or is it simply retesting the old resistance for support?
Let’s look at the key indicators for how this could play out...
The 5m chart has just bounce off an oversold RSI and is working its way up to the test of 50.0; which should give a solid indication of who is in control of the market. Interesting to note is the lack of volume that was required to push price back to $5500. After weeks of bears letting the price move with little effort; suddenly the bulls were nowhere to be seen!
Next, the 4H chart is coming off a broader overbought position; however, the RSI has been trending higher lows; so look for signs of RSI breaking below the trend. 50.0 should also offer some support for the bulls. This is particularly important at the moment as the price is right on the edge of testing the support. If there is free capital; now if the time bulls should pull the trigger on some trades.
Finally, the 1D chart offers us some further details; mainly the bearish divergence between price and RSI; which sees a lower high forming on the RSI – just below the 80.0 threshold. Price is currently also showing a gravestone doji; although there is still 14 hours left on the candle...so take that with a grain of salt!
The previous 1D candle officially closed with shorts > longs on Bitfinex margin; which was the first time since January. The previous 2 instances of this happening resulted in bearish movements. Two datapoints, a trend does not make – but that’s a mighty fine coincidence.
With the 52W MA right above @ 5678; I am liking the bear side of this market.
OPEN INTERESTS (BITFINEX)
Long: 1.73 Days
Short: 2.00 Days
RELATIVE STRENGTHS
ON BALANCE VOLUME
KEY PRICE AREAS
Resistance: 5678 (52W MA), 6200, 6500
Support: 5350, 4974 (28D MA), 4880
PREVIOUS ANALYSIS
Is Bitcoin about to crash; or is it simply retesting the old resistance for support?
Let’s look at the key indicators for how this could play out...
The 5m chart has just bounce off an oversold RSI and is working its way up to the test of 50.0; which should give a solid indication of who is in control of the market. Interesting to note is the lack of volume that was required to push price back to $5500. After weeks of bears letting the price move with little effort; suddenly the bulls were nowhere to be seen!
Next, the 4H chart is coming off a broader overbought position; however, the RSI has been trending higher lows; so look for signs of RSI breaking below the trend. 50.0 should also offer some support for the bulls. This is particularly important at the moment as the price is right on the edge of testing the support. If there is free capital; now if the time bulls should pull the trigger on some trades.
Finally, the 1D chart offers us some further details; mainly the bearish divergence between price and RSI; which sees a lower high forming on the RSI – just below the 80.0 threshold. Price is currently also showing a gravestone doji; although there is still 14 hours left on the candle...so take that with a grain of salt!
The previous 1D candle officially closed with shorts > longs on Bitfinex margin; which was the first time since January. The previous 2 instances of this happening resulted in bearish movements. Two datapoints, a trend does not make – but that’s a mighty fine coincidence.
With the 52W MA right above @ 5678; I am liking the bear side of this market.
OPEN INTERESTS (BITFINEX)
Long: 1.73 Days
Short: 2.00 Days
RELATIVE STRENGTHS
- Micro (5m): Weakening
- Short Term (4h): Weakening
- Mid Term (1D): Bearish Divergence
- Macro (1W): Hidden Bearish
ON BALANCE VOLUME
- Mid Term (1D): Higher
- Macro (1W): Flat
KEY PRICE AREAS
Resistance: 5678 (52W MA), 6200, 6500
Support: 5350, 4974 (28D MA), 4880
PREVIOUS ANALYSIS
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Wyłączenie odpowiedzialności
Informacje i publikacje przygotowane przez TradingView lub jego użytkowników, prezentowane na tej stronie, nie stanowią rekomendacji ani porad handlowych, inwestycyjnych i finansowych i nie powinny być w ten sposób traktowane ani wykorzystywane. Więcej informacji na ten temat znajdziesz w naszym Regulaminie.