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XBTUSDT(4H) - Descending Channel & Bullish Divergence

BITMEX:XBTUSD   Bitcoin / US Dollar Perpetual Inverse Swap Contract
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XBTUSDT(4h) trading within a descending channel (green main line) confirming continuation of bearish price action. However, a bullish divergence (blue) has formed which may tempt those looking to build an early long position.

Overall though, the trend is still down so overall position is short. Levels to watch are in and around 3500 (purple) which previously acted as support and will offer some resistance, while the main channel will also act as resistance at 3600. Channel will provide support around 3333 but we're more likely to breaking to the downside that than upside.
Comment: Price moving up through channel with relative ease rather than any impulsive move. Don't expect it to blast thought the fortnight-long support at 3500 on the first attempt, so trade idea would be in the direction of prevailing trend - small short in the 3490 region and a stop just above a channel breakout. If price makes move toward top of the channel, will increase position on expectation of rejection.
Comment: Price continuing to move sideways with no real test of resistance at 3500, never mind the top of the channel. The significance of the bullish divergence is reduced, and with a heavy kumo cloud also acting as resistance, I expect to see further downside. Channel support now below 3300.

Ideally, another day or two and we'll see a retest of converged channel and 3200 support, where I'll be opening a long.
Trade closed: stop reached: Just getting back to this... no re-test of 3200 but a significant breakout of channel and some consolidation.

Possible momentum shift. Watching out for long entry.

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