As myself and many others on here predicted ~8k would be support and a possible bottom. Now that we have confirmation it is support... the only question left is whether it is also the bottom!
We have hidden Bullish divergence on OBV and RSI indicating this level as a possible bottom.
This is reason enough for me to start accumulating bitcoin again to hold, but I am not convinced we will not go lower so I saving most of my cash for lower levels. The next stop is ~5k if 7.6k Fails.
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I am getting some push back from other traders, saying I am not using divergences correctly here. My goal for this chart is to learn more about them so if you have experience working with them, please contribute below by posting your own charts/knowledge.
This is NOT bullish divergence in the slightest. Please do not confuse new comers with conflating the value of how to spot "regular bullish divergence." There is nothing bullish about seeing deeper RSI values whilst price makes new lows on the near term time frame such as this. Deeper RSI values relative to price tend to suggest continuation of the prior trend...in this case more to the downside. Most often that downside momentum is reversed after we get "regular bullish divergence" in some form be it RSI, Stochastics, MACD etc. I would focus the study on "Pattern Cultivation" which is far more constructive. After going through a -60% correction, the bottom is something that will very likely occur after a bottoming pattern of some kind has been CULTIVATED over time. It's very unlikely that the bottom will take place off of one single price event.
TheChasm
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@BotTrigger, So I posted this chart for the exact reason to get called out by traders like you. Divergences are not my forte so I decided to publish this chart to stimulate conversation and learn something.
As for the confusing new comers. I understand that I have a lot of followers so I should take that into consideration with what I publish, but at the end of the day I publish charts for my own benefit first. Building off the ideas from my "bitcoin on the weekly" chart I decided to try something I am less comfortable with.
So thank you for the feedback. If you are experienced with divergences maybe we could have a conversation about it I DMed you, or you could post a chart here demonstrating your ideas.
mmcaulay
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This is not how bullish divergences work. You should be looking for a reversal signal on lower lows in a downtrend. For example look at the three big down wicks after the top. If your oscillator were failing to make lower lows at those points in time (which it is not), that would be a bullish divergence.
TheChasm
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@mmcaulay, Sent you a DM, Looking to discuss this with you further.
RickyParker
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yes , i think so ~~ very bullish
Zakir-Ahmed
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u will get ur answer at 10k...if we passed through it we r ready for bull if not target 5k