BTC.D Bearish Divergence|ALT Coin Rally?
Hello Traders,
Happy Friday Here from Australia!
Today’s chart update will be a little different; we will have a look at the Bitcoin Dominance Chart which is currently looking like its forming a bearish divergence, could this potentially be an indication for an ALT coin rally?
Points to consider
- Trend has been bullish on daily
- Major structural resistance and .618 Fibonacci level
- Local support at .50 Fibonacci
- RSI respecting down resistance
- Stochastics showing upwards momentum
- EMA’s giving price resistance
- Volume just above average
The BTC.D chart has been on a very strong rally since Jan 2018 with healthy corrections back to the trend line. Currently price is testing local trend line, which will be confirmed by three touches, however a return to the establish trend line is more probable as its backed with bearish indicators.
Major structural resistance, the .618 Fibonacci level has held BTC.D, this level needs to break for continuation, although is looking improbable due to the bearish divergence formation. Local support is at the .50 Fibonacci Level, which is highly probable to be tested if the upper trend line does not hold.
The RSI is respecting its downwards resistance, has and is converging from price, further gives merit to the potential bearish divergence. Stochastics is however showing upside potential, lots of momentum for the bulls if levels are broken to the upside…
The EMA’s are currently giving price resistance, this being in confluence with structural resistance and the .618 Fibonacci level further implies on the heavy resistance and the probable bearish divergence…
Volume overall is very strong, just above average, this goes to show that either a break down and or a continuation can come to fruition from current levels.
IMO, a correction will be more probable as we do have clear characteristics of a bearish divergence in the chart, this usually means a small ALT coin rally can come to culmination…
What are your thoughts? Is the BTC.D chart due for a correction?
Please leave a like and comment,
And remember,
“A peak performance trader is totally committed to being the best and doing whatever it takes to be the best. He feels totally responsible for whatever happens and thus can learn from mistakes. These people typically have a working business plan for trading because they treat trading as a business.” – Van K
Happy Friday Here from Australia!
Today’s chart update will be a little different; we will have a look at the Bitcoin Dominance Chart which is currently looking like its forming a bearish divergence, could this potentially be an indication for an ALT coin rally?
Points to consider
- Trend has been bullish on daily
- Major structural resistance and .618 Fibonacci level
- Local support at .50 Fibonacci
- RSI respecting down resistance
- Stochastics showing upwards momentum
- EMA’s giving price resistance
- Volume just above average
The BTC.D chart has been on a very strong rally since Jan 2018 with healthy corrections back to the trend line. Currently price is testing local trend line, which will be confirmed by three touches, however a return to the establish trend line is more probable as its backed with bearish indicators.
Major structural resistance, the .618 Fibonacci level has held BTC.D, this level needs to break for continuation, although is looking improbable due to the bearish divergence formation. Local support is at the .50 Fibonacci Level, which is highly probable to be tested if the upper trend line does not hold.
The RSI is respecting its downwards resistance, has and is converging from price, further gives merit to the potential bearish divergence. Stochastics is however showing upside potential, lots of momentum for the bulls if levels are broken to the upside…
The EMA’s are currently giving price resistance, this being in confluence with structural resistance and the .618 Fibonacci level further implies on the heavy resistance and the probable bearish divergence…
Volume overall is very strong, just above average, this goes to show that either a break down and or a continuation can come to fruition from current levels.
IMO, a correction will be more probable as we do have clear characteristics of a bearish divergence in the chart, this usually means a small ALT coin rally can come to culmination…
What are your thoughts? Is the BTC.D chart due for a correction?
Please leave a like and comment,
And remember,
“A peak performance trader is totally committed to being the best and doing whatever it takes to be the best. He feels totally responsible for whatever happens and thus can learn from mistakes. These people typically have a working business plan for trading because they treat trading as a business.” – Van K