Following Bitcoin's Triple Rejection on the 1D MA200 (yellow trend-line) which is a negative sign, the price has formed a Triangle (blue pattern) that typically does when it consolidates. The question is what happens next? Well, on the short-term there are various indications that can be used for projections.
** 4H RSI Bullish Divergence ** From late April until May 11, BTC was rising on Higher Highs. At the same time, its RSI on the 4H time-frame was on Lower Highs, a Bearish Divergence that may indicate that a trend is losing its strength. The result was this 1 week crash of May 19. Since May 19, the price has been under Lower Highs but this time the 4H RSI is on Higher Lows, a Bullish Divergence that may potentially indicate that the bearish trend is losing strength.
** Channel Up or Channel Down? ** This RSI Bullish Divergence may make the Triangle shift into a Channel Up (green pattern). That is of course assuming the Higher Lows trend-line stays intact and in turn break the 1D MA50 finally and make a Higher High above 43500.
If however the 4H MA100 (green trend-line) rejects the price, then the Lower Highs will continue and there will be more probabilities for a Channel Down (red pattern) to emerge instead out of the Triangle.
** The potential 4H MA50/ MA100 Bullish Cross ** What may be a difference maker between the two, is the potential Bullish Cross between the MA50 and the MA100 on the 4H time-frame. May people compare the current crash to the one in March 2020 that was fueled by the COVID market meltdown. Since that benchmark, every Triangle (with the exception of one in May 2020 that continued sideways), finished on a 4H MA50/100 Bullish Cross and was on an RSI Bullish Divergence, eventually broke upwards and made a Higher High. See the charts below:
So what do you think it is going to be? Triangle leading into a Channel Up or Channel Down? Feel free to share your work and let me know in the comments section!
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RSI divergence means that the slopes of RSI / price supports are divergent, price: k*x+d / rsi: -1*k*x + d -> hidden bullish divergence and price: -1*k*x+d / rsi: k*x + d -> bullish divergence (please note that -1 is just for underlining that k must be negative in this case). You are using the resistances, which form bearish not bullish divergences. The only valid bullish divergence in your examples is the one in fig. 3. In the other cases there is no divergence. Please don't post wrongly applied techniques.
Divergences explained with some valid examples ,...
apsnt
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@dklug8, Tradingshot knows nothing about trading. Literally 37269 followers and doesn't know what a divergence is.This is a clickbait account. This type of "traders" literally prey on the people's attitudes by usually being permabulls to attract likes and followers and extremely often they make the simplest mistakes. Some even can't draw a proper trendline... MagicPoopCanon was one such, too.
UnknownUnicorn1539772
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@apsnt, Yes, unfortunately most technical analysis in trading view are either crystal balling nonsense or faulty technique. At least those concerning Crypto. The problem is that people are investing like theiy are analysing. Which adds quite a portion of chaos to an already chaotic market.
apsnt
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@dklug8, I really appreciate you took the time to post examples of divergences and expose TS's malpractice.
nir83257
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Nice & clear presentation, I think we will go down to 30k and then bull that will grow to huge bull till 100k
Divergences explained with some valid examples ,...