As we can see the price chart is showing us that BTC is getting higher-highs on the waves, while the oscillators are showing us lower-highs. This could signify a drop in price, However its still a bit early to call for a drop since the price chart nor the oscillators have finished forming the wave.
This could mean 2 things:
- First (More likely): The prices chart and oscillators will confirm the end of the wave and by that confirm the divergence, this would result in a price drop . This could be also confirmed by the cross for a downtrend soon (if this scenario is correct). To further proof this scenario I also consider the fact that the price has reached a critical resistance line that has been providing active resistance through this downtrend, you could say that it has been broken, but if you take a look at the 1-Day chart you would see that the price is pulling back down from the line after crossing it, and since resistance is not a straight line but a zone visualized by the line, this would confirm a decline in price. Going even further than that, if we take a look at the 1-Day chart again we would see that the price is moving towards a "Fat" Red cloud (with no green clouds in sight) and this could prove the resistance theory, and e if we take a look at the 1-Week chart we would see that the price is bumping on the base line of the and being declined by it with a possible cross of the lines for a stronger downtrend.
- Second (Less likely) : The oscillators are not showing lower highs but just a "small hill" in the build of a even bigger and stronger price trend upwards, there is not much to prove this theory so I'm gonna leave it at that
Now, I'm not saying Bitcoin is going to zero nor that this is the end of it, I personally don't think that it will go much lower than before either since this is not some massive divergence, however I could see a pattern forming (left shoulder is the lower high on the price chart and the head is the higher high) and this could shake things up a bit and wee will see thing going from there, since I don't do price prediction I'm not gonna make any call on how low it will drop .
Keep watching the charts for a possible buy signal. Happy trading!