Hope your weekend went well! Unfortunately Bitcoin's hangover is not responding to fluids, aspirin, or even greasy food like mine did. Guess all the traders in Philly sold before they went to flip cars and climb light poles. No disrespect to Philly though, its my hometown(go Eagles yipeee!!) and it was a great game... But I digress. Onto the analysis.
Observing the 4 hour chart, the price clearly took a major hit last night, dropping from ~9200 to a low of 7200. is still angled downwards, with no sign of positive divergence... Even if there was, I wouldn't be taking it too seriously (see my Zcash analysis for a case of positive divergence which didn't hold up: https://www.tradingview.com/chart/ZECUSDT/1mug032Y-Waiting-for-the-Super-Bowl-to-start-Don-t-Watch-Zcash-ZEC/). The point is, positive divergence needs some other evidence if its going to be proved valid. Just like anything else in , there is no ONE indicator good at everything.
For the , the short term average already crossed below the long. It doesn't look like it's looking to come back for a while either. Closest support is 6950s (Green dashed line) with closest significant resistance at 9470s (Red dashed line). There are a bunch of tiny supports and resistances in-between, but both of these levels have been tested many times before(even back in November on the 1 day charts).
Overall, I expect that BTC could bounce back close to the yellow star(8200s), but do not be fooled. As we have seen, BTC has had many failed breakouts which have cost buyers thousands of dollars. Check my past post if you want to see an example of a very recent failed BTC breakout (https://www.tradingview.com/chart/BTCUSDT/YsC7XOrV-In-Bits-and-Pieces-Don-t-Watch-BTC/). Fool me once Bitcoin , shame on you.... Shame me twice well, then ill stick with Ramen and save my money in a long term savings account with .00001% interest.
After the failed breakout, I expect BTC to settle around its support at 6950s.
Hope your Monday goes well! ^_^
Remember, don't try to catch a falling knife.
Best of luck,