CryptOReilly

BTC bearish divergence. Short term bear

Short
CryptOReilly Updated   
BITMEX:XBTUSD.P   Bitcoin
Hey,

This is quiet a simple analysis.

As we know, we are expecting a daily tightening range (equilibrium) for BTC on the daily timeframe which means a lower high under the 11,150 zone.

Now zooming into the 1hr chart as we get close to the resistance zone, it is apparent we have a hidden bearish divergence, as you can see by the lower high formation on the RSI.

Furthermore, we are seeing the divergence trend line steepen upon the RSI San price action is becoming more horizontal and less vertical showing that the short term trend reversal is now favorable.

Day trading bears have an excellent opportunity here and can short with a SL at 11,200.

Comment:
Since posting, we have have lost the hourly uptrend which was indicated by this hidden bearish divergence. Now awaiting for a lower high to form before continuing lower.

Would be looking to take profits in low 10’s if opened short position at time of writing.
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