Hello fellas, here I give you another perspective of bitcoin in the daily time frame. In the last few days, the price of the bitcoin is moving so slow and we see decrease in volatility unfortunately. So, I hope after the weekly candle closes in the next few hours, we will see the volatility coming back again.
First of all, I want to give you the explanation of the divergence between the price and the oscillator indicator. There are 2 basic types of divergence if we compare the price with the oscillator indicator. The first divergence is the regular divergence which will indicate the reversal opportunity. And the second one is the hidden divergence which will indicates the trend continuation. And in this analysis, I will give a highlight on the 2nd type of divergence.
From the chart, we can notice a very important price action behavior if we compare it with the oscillator indicator. And the oscillator indicator that I'm using is RSI. we can see that since the August 6th, the price has showed us a lower high structure although at current rate, I'm not so sure if the price has already topped yet. And on the RSI, we can see that it forms a higher high structure since the August 6th, 2019. However, with this current structure, there is a possibility of bearish trend to continue if we get a confirmation of lower high comparing with the top of October 26th.
This hidden divergence perspective will be invalidated if we see the price breaks out of the white resistance zone.
First of all, I want to give you the explanation of the divergence between the price and the oscillator indicator. There are 2 basic types of divergence if we compare the price with the oscillator indicator. The first divergence is the regular divergence which will indicate the reversal opportunity. And the second one is the hidden divergence which will indicates the trend continuation. And in this analysis, I will give a highlight on the 2nd type of divergence.
From the chart, we can notice a very important price action behavior if we compare it with the oscillator indicator. And the oscillator indicator that I'm using is RSI. we can see that since the August 6th, the price has showed us a lower high structure although at current rate, I'm not so sure if the price has already topped yet. And on the RSI, we can see that it forms a higher high structure since the August 6th, 2019. However, with this current structure, there is a possibility of bearish trend to continue if we get a confirmation of lower high comparing with the top of October 26th.
This hidden divergence perspective will be invalidated if we see the price breaks out of the white resistance zone.
