jacobcanfield

What will happen on this third hidden bearish divergence?

BITMEX:XBTUSD   Bitcoin / US Dollar Perpetual Inverse Swap Contract
A high quality signal from the past August of 2019.

A hidden bearish divergence is when price makes a lower low but RSI makes a higher high.

On this chart, we can see that we've had two hidden bearish divergences on this downtrend move.

The other thing I see from a high time frame perspective is the lower highs that have been rejected at former weekly resistance levels.

We can also see the weekly RSI is moving into a transition zone similar to 2018.


For this to be invalidated, we need to see a close above $9900 (in my opinion.)

This may play out down to $7400 (weekly open), $7150 (yearly open) or lower depending on the strength of the bears.

It'll be interesting to see how this plays out.

Let me know what you guys think in the comments. As always, if you enjoy my content, hit me with a like. Appreciated.
Jan 12
Comment: I also forgot to include my CME futures Bitcoin analysis.

We did breakout of one downtrend resistance, but recently wicked up to the 200MA (daily) that held us as support before the China pump

Invalidation would be a break and close above 200MA in my opinion

Hidden bear div also present on daily RSI.

Jan 13
Comment: Haha... Get rekt noob trader.
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The noob trader comment was a pretty random comment. We dont even know if btc will break the MA 200 yet. But they will get rekt if btc fails to break it. And then we will likely see 5000 usd or lower.
Reply
Hi Jacob, great analysis!

If iam correct, the RSI getting to transition zone in past always had to go lower and bottomed, before entering the transition zone again on the transition to bull market.

Means there should be another big dip right?

The play is pretty similar as in 2018 bear market... bearish divergences, EMA & MA crossing each other ...

Iam bearish for sure...

Would be great to get some answer from you!

Good luck from Bali Indonesia.

Matt
Reply
@Matyas44, i'm also bearish. 6600 bottom would be too good to be true for me. That is what the fools in the markets want. I cant imagen the whales are going to give them what they want. Hehe.
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Matyas44 Confucius-The-Great
@Confucius-The-Great, What do you use as a metric to target 6600? Have you heard about MVT ratio? Onchain analysis... the bottom should be around 7200 as per my point of view...
Reply
hi
a new idea from me
your thoughts?
+1 Reply
@David_Smith, Eric Krown agree.
Reply
Not that I care for indicators, but that's a bullish divergence buddy. Are these the kind of signals you give on your website?
+3 Reply
Rektfield !!! total Rekt
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