Bitcoin has confirmed bullish divergence on the 4-hour chart (and the hourly, which is not particularly powerful), with a likely divergence printing on the 6-hour.
These are signals I love to look for for likely bottoms, even if temporary. As you know, these divergences can build - meaning we get more lows on price with more highs on RSI to make them stronger. I particularly like when we see these divergences on multiple time frames.
I also don't love the shape of this divergence, with the flattened RSI for a period at the bottom.
But still - it counts.
My concern is that RSI has not even hit oversold on the 6-hour or 12 hour, and is still not even close on the daily. As you know, RSI always eventually makes the trip from overbought to oversold and back. And RSI has not been oversold on the daily since $25,000 or so in August.
These are signals I love to look for for likely bottoms, even if temporary. As you know, these divergences can build - meaning we get more lows on price with more highs on RSI to make them stronger. I particularly like when we see these divergences on multiple time frames.
I also don't love the shape of this divergence, with the flattened RSI for a period at the bottom.
But still - it counts.
My concern is that RSI has not even hit oversold on the 6-hour or 12 hour, and is still not even close on the daily. As you know, RSI always eventually makes the trip from overbought to oversold and back. And RSI has not been oversold on the daily since $25,000 or so in August.
scott.melker@texaswestcapital.com