DLavrov
Short

Bitcoin - Will We Get a Strong Trend Reversal Signal?

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
The market is going to form a strong trend reversal signal. If the daily candle is closed at the current levels of below, the market will start forming a new swing high. This swing high will be higher than the previous one but RSI and MACD will make new "highs" lower than the previous ones. The price will diverge with the indicators and it will give us a bearish divergence. This is a strong trend reversal pattern which sometimes leads to a new trend in the opposite direction, sometimes it leads to a correction or sideways movements.

I don't think that we will get a new bearish trend , but the bearish divergence gives the additional signal supporting the correction movement from the current levels or 6000.00 resistance zone if the market tries to move higher.

For confirmation the bearish divergence it will be good if the price breaks the local uptrend line. For the confirmation further downward movement, the price will need to break 5000.00 support level .
If we talk about the long term market movement, it stays bullish .
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Total market cap showed the bear flag below the (larger) bear flag before this recent drop. The ALTS were even more obvious.
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@DLavrov I'm grateful for all the knowledge you share.

Can you say anything about where BTC is likely to turn, like closer to 5500 or 6000, based on last hours events?
Seems like a decisive moment now..
Best regards
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DLavrov mr.bergan
@mr.bergan, I wrote many times that the market can reverse from 5000 resistance and around it, or if the price continues the upward movement - the next strong resistance will be 6000.00 level.
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@DLavrov, Thank you. I did read it. I guess I wondered if it was possible to tell more accurately at that time, as I probably over-interpreted insignificant changes. And lacking patience, badly... :-)
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I post similar thoughts the other day; and when we look at the overhead resistance compared to the downside risk - IMO it is very clear that the reward favours the bearish right now. Without fresh capital entering - the bulls need to create something special to breach 6k; whilst a short position has room all the way down to $4k.

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Thanks you for your analyse, i agree with you
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Thanks for pointing out the RSI divergence, looking like we might see a correction towards the breakout level:

Cheers!
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DLavrov dh17982
@dh17982, thanks for sharing your idea!
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What price do you feel Bitcoin will stop before consolidation/next bullish movement stars?
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DLavrov welcome_universe
@welcome_universe, I would like to see it between 5000 and 4200.
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