TaherJalili

The negative divergence on the relative strength index

Short
BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
The negative divergence on the relative strength index suggests that the momentum has weakened. If the price breaks and sustains below the 20-day EMA , the traders are likely to wait for the BTC /USD pair to find support at lower levels, before buying.

On a drop below the 20-day EMA , the decline can extend to the $11,100–10,900 support zone .

Contrary to this assumption, if the pair rebounds off the 20-day EMA , the bulls will make another attempt to push the price above the $12,113.50–$12,460 resistance zone . If they succeed, the uptrend is likely to resume.