samadamsSAO

Bear flag with hidden bullish divergence?

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
You can see we are forming a bear flag , but there are a couple of potentially bullish signs in the indicators.

1) Look at the RSI . You can see BTC is becoming less oversold even though the price continues to descend. A sign of bullish divergence .
2) Bear volume declining while the price is still traveling lower. This is a good sign although a break to the downside will surely bring back the bears.
3) There is also a bullish MACD cross.

These signs are pointing to exhaustion of the current trend in this time frame.

This is just an idea and waiting for confirmation after a break to either side is the best course of action.



Trade closed: stop reached: lol, poor btc

Comments

This is the same patter we are forming right now!! Great analysis ;)
Reply
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