It seems that the bitcoin chart in the part that I have marked with triangle B has formed a pattern similar to triangle A (diagonal ending triangle, three negative divergences, etc.)
Many believe that if the trend line breaks in triangle B, the price could drop to $ 40,000 or even less.
But there are two important differences between these two parts of the chart:
First, the RSI index in triangle A has penetrated below 50 three times, and finally, with the stabilization below 50, The downtrend has begun. But in triangle B the RSI is still above 50. The second point is about the volume of the descending candelabra that the recent descending candelabra of triangle B is below the moving average volume line, while the last descending candlesticks of triangle A have recorded an acceptable volume above the average volume.
If the trend line of the triangle is broken, its confirmation is conditional on lowering the RSI below 50 and recording the volume above the average volume.
With these interpretations, I think as long as the RSI is above 50 and the volume is below the average volume, the chart trend is still bullish and breaking the trend line could be a fake break.
Finally, an acceptable analysis is not listing the various probabilities on the chart, but describing the circumstances under which a probability occurs and also what is more likely to occur.
Many believe that if the trend line breaks in triangle B, the price could drop to $ 40,000 or even less.
But there are two important differences between these two parts of the chart:
First, the RSI index in triangle A has penetrated below 50 three times, and finally, with the stabilization below 50, The downtrend has begun. But in triangle B the RSI is still above 50. The second point is about the volume of the descending candelabra that the recent descending candelabra of triangle B is below the moving average volume line, while the last descending candlesticks of triangle A have recorded an acceptable volume above the average volume.
If the trend line of the triangle is broken, its confirmation is conditional on lowering the RSI below 50 and recording the volume above the average volume.
With these interpretations, I think as long as the RSI is above 50 and the volume is below the average volume, the chart trend is still bullish and breaking the trend line could be a fake break.
Finally, an acceptable analysis is not listing the various probabilities on the chart, but describing the circumstances under which a probability occurs and also what is more likely to occur.
Comment:
sorry 3 divergences are negative not positive