Here's a quick look at the 8 hr. BTC chart. The bearish divergence on the RSI suggests that the trend is losing momentum, and a downward move could be expected. Additionally, the low volume indicates that a substantial movement could occur at any moment. With the bearish divergence on the RSI and the low volume, it's highly likely that a move to the downside could happen soon.
It's important to consider the unfilled CME- and Fair value gaps located below the current price. Typically, these gaps are eventually filled, so expecting a price retracement to those levels is reasonable. However, it's worth noting that filling such gaps could take a while, although they are usually filled relatively quickly.
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What's a Fair Value Gap?:
A fair value gap is the difference between a financial instrument's theoretical value and market value, such as a derivative or security. It can indicate a misprizing opportunity for traders to profit by buying or selling at the misprized level. In other words, there is a gap in the price in which some open orders still need to be filled. The price will return to fill the orders.
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It's important to consider the unfilled CME- and Fair value gaps located below the current price. Typically, these gaps are eventually filled, so expecting a price retracement to those levels is reasonable. However, it's worth noting that filling such gaps could take a while, although they are usually filled relatively quickly.
-------------------------------------------
What's a Fair Value Gap?:
A fair value gap is the difference between a financial instrument's theoretical value and market value, such as a derivative or security. It can indicate a misprizing opportunity for traders to profit by buying or selling at the misprized level. In other words, there is a gap in the price in which some open orders still need to be filled. The price will return to fill the orders.
-------------------------------------------
If you like the content, then make sure to comment and like the post :D
Follow me for daily profitable trading setups.
BTC dictates the market. If BTC falls, then Alts will drop as well. Trade safe!
Comment:
RSI bearish divergence on the Daily TF:
Comment:
A bearish divergence on the Relative Strength Index (RSI) occurs when the price of an asset is making higher highs while the RSI is making lower highs. This indicates that the momentum of the price is weakening and that a potential trend reversal to the downside could occur. The bearish divergence can be a useful technical analysis tool for traders to identify potential trend changes in the market. It's worth noting that a bearish divergence is not always a guarantee of a downward move, but it can be a useful indication for traders to keep an eye on the market and act accordingly.
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