As you can see, there is a hidden bearish divergence on a daily timeframe for BTC/USD. If high of this swing stays below previous high or make a double top, we could see one more huge wave down for BTC.
I dont think so, as you used more than 14 candles for the divergence, so its more likely not valid
AjnoudaSikret
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@traderwean, Thanks for your opinion, didn't know about that rule.
AjnoudaSikret
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We have a breakout from a big bad trendline, but we can see a bearish divergence on almost every timeframe now, so be carefull and dont rush in. Be extremly carefull.
GL
curiouscoin
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This is actually a bullish RSI divergence. Pretty evident. Bullish momentum is rising and much higher for today's price than the other high you have there as we were going down in correction.
curiouscoin
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@curiouscoin, agree with traderwean BTW. But if less than 14 candles, still a bullish divergence.
AjnoudaSikret
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@curiouscoin, Hardly. Its a hidden bearish divergence by definition, but high of this swing must stay below previous high.
curiouscoin
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@AjnoudaSikret, Could you educate me, technically speaking on why it is bearish? I disagree - I think it's bullish. i think it's bullish because clearly the momentum on RSI on the higher high is lower (even in bear territory under 50%), while the lower high on price has a notably more bullish RSI momentum of close to 60% which means that EVEN though the lower high is lower in price than the higher high, it's got more bullish momentum overall. Also, calling in "hidden bearish divergence" has two strange things, "hidden" it's not. It's pretty evident. Second, if it's an RSI bearish divergence then the RSI would be bearish but the price is the one that is bearish... so you don't need an RSI (smiling) to say this is bearing, you have lower highs on price so that's bearish by itself without the need to use the RSI... that or I can't tell if you are just being sarcastic with this post... OK, now please educate me, why am I wrong?...