First is the divergence showing up on the 4 hour time frame. Look on the below, it looks like it’s going to fall pretty hard if this divergence holds up.
Also, if we look at the chart, we see that the price was unable to pierce through the purple line which represents a very important that has held bitcoin up since September 15th low.
This support line was broken recently, leaving the next support (green line) from November the only last true support for this year’s uptrend.
Now that the price is bouncing between the purple and green , we see the price touched the purple resistance and is now falling back down.
The fact that Bitcoin was unable to get through this resistance, is a big setback for this bull run.
If and momentum kick up on this drop, I expect to see prices fall to the .236 fib retracement level first. If it continues to fall, the green support below will be the next target.
I hope this helps everyone with their trades. Good luck!
I wouldn't be surprised if the price comes back up to the .382 fib level to re-test that as resistance now.
If that happens, then it looks like the right shoulder of what appears to be a head&shoulders formation could be taking shape.
Once this pattern is realized, expect the subsequent selloff to be swift with heavy volume.
Of course, we should wait for the re-test of .382 fib and a failure to break through this zone before considering going short.
Here's the chart:
I've also noticed this entire formation is looking pretty symmetrical, and even though it's never perfect we can still use this to help provide a clue to timing the next dump or pump. With that said, we should expect to see a big move in either direction by this evening, tomorrow morning latest.
I'm surprised that 4 hour divergence didn't lead to a bigger dump by now, this market is causing lots of confusion for traders. That's why I'm staying out until things become more clear. No point trying to guess where the market is headed with all this resistance directly overhead. Until then we remain patient and strike at the right moment
If we get through this line, it will be huge for Bitcoin and will finally put an end to the bear market. I'm sticking to my gut and calling for a drop only after failing to get through the trend line. I see a huge 4 hour bearish divergence setting up on the RSI again and there is still the hidden bearish divergence on 4 hr looming. Let's see if price can break through and remove the possibility for divergence