If we look at this cart we see a couple of trends. Overall, we see an upward movement, to a peak around $4400. As we look at a volume indicator, the RSI, we notice the the very highest peak had lower volume than the peak before it, leading to what is called a bearish divergence, drawn by the red arrow over the bottom indicator. After this there was large volume sell off down to below 4000. This movement dropped below the MA 50 line. We now find a price hovering between MA 50 and MA 100.
Looking on different charts, we see the bearish divergence on the 4HR chart, and the 1D chart. So we should expect the market to turn slightly.
On the 1 hour chart, we start to see a head and shoulders formation, with this 3rd rise in price relating to the 2nd shoulder, after the head. The price went all the way down to the neck line, and rose back up again. With a bearish divergence already in place, this would seem to point to the possibility, that this 3rd rise could lead to a downtrend. If price reaches 3900, we must watch closely.
2 possibilities, the market could react and strong volume could prove resuming the bullish market (most likely). Or, the price does not bounce off this mark, which triggers a sell off. The amount of loss, will be the same amount of gain realized from the neck line to the top of the head *vertical arrow up" / vs the corresponding "vertical arrow down".
Just a thought, the market has been unstoppable in the upward direction, and we might be in for a minor correction. Let me know your thoughts/ what you see!
Looking on different charts, we see the bearish divergence on the 4HR chart, and the 1D chart. So we should expect the market to turn slightly.
On the 1 hour chart, we start to see a head and shoulders formation, with this 3rd rise in price relating to the 2nd shoulder, after the head. The price went all the way down to the neck line, and rose back up again. With a bearish divergence already in place, this would seem to point to the possibility, that this 3rd rise could lead to a downtrend. If price reaches 3900, we must watch closely.
2 possibilities, the market could react and strong volume could prove resuming the bullish market (most likely). Or, the price does not bounce off this mark, which triggers a sell off. The amount of loss, will be the same amount of gain realized from the neck line to the top of the head *vertical arrow up" / vs the corresponding "vertical arrow down".
Just a thought, the market has been unstoppable in the upward direction, and we might be in for a minor correction. Let me know your thoughts/ what you see!