Trend Analysis:
The Bitcoin price has seen a nice steady rise since the 31st of August, but now we are reaching another critical moment. We are testing the next resistance level and if we could breakthrough, we could be headed up to 12k. Unfortunately, though, a bearish divergence is happening on the 4hr chart. Usually when this is spotted, it means we could be ready for a reversal.
A bearish divergence is when the price reaches a new high, and the RSI records a lower high. If this is the case, we could see the price retract a bit to the nearest support of ~$10,400. If we can hold this, we could start to climb again, if not we will drop sub $10,000.
Technical notes:
We have a great amount of momentum now since the EMA(20) is showing the price clearly above the line, but this could all change. The RSI is recording lower highs while the BTC price is recording higher highs, so this may mean that we will make a reversal down to the nearest support of ~$10,400.
Conclusion:
Get ready for a small retraction back to the support line. Once there, if the price can hold, we could be headed back up. If it starts to dip below the support, then we could end up sub $10,000 again.
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Happy trading!
The Bitcoin price has seen a nice steady rise since the 31st of August, but now we are reaching another critical moment. We are testing the next resistance level and if we could breakthrough, we could be headed up to 12k. Unfortunately, though, a bearish divergence is happening on the 4hr chart. Usually when this is spotted, it means we could be ready for a reversal.
A bearish divergence is when the price reaches a new high, and the RSI records a lower high. If this is the case, we could see the price retract a bit to the nearest support of ~$10,400. If we can hold this, we could start to climb again, if not we will drop sub $10,000.
Technical notes:
We have a great amount of momentum now since the EMA(20) is showing the price clearly above the line, but this could all change. The RSI is recording lower highs while the BTC price is recording higher highs, so this may mean that we will make a reversal down to the nearest support of ~$10,400.
Conclusion:
Get ready for a small retraction back to the support line. Once there, if the price can hold, we could be headed back up. If it starts to dip below the support, then we could end up sub $10,000 again.
Follow me on Twitter for more TA!
Happy trading!
