Why I'm BULLISH on BITCOIN. psssst its hidden divergences
In this chart we use the RSI on Daily TF to review bullish divergences in the BITCOIN price action compared to RSI readings.
starting with the Summer 2021 Bear market. you can see we had a high volatility drop in price which in turn sent the daily RSI to a rather oversold reading. as the days went on from that initial price drop we trended lower however the RSI continued to grind its way higher eventually making a HIGHER low while the price of Bitcoin grinded to a LOWER low. this type of divergence is referred to as a "Bullish Divergence"
looking at the yellow box I labeled "neutral zone" you can see the bottom of the box was support for the price of bitcoin at the same time the RSI reading was supported by the bear market RSI low. since then BITCOIN price had gone up and now coming back to down to retest the "neutral zone" bottom making a HIGHER low on the BITCOIN price while making a LOWER low on the RSI reading. this type of divergence is referred to as a "Hidden Bullish Divergence"
this "Hidden Bullish Divergence" is my thesis on if we have bottomed on BITCOIN and will begin to trend higher.
what do you think?
follow me at @brooklynboy436 (ELM Trading NYC)
starting with the Summer 2021 Bear market. you can see we had a high volatility drop in price which in turn sent the daily RSI to a rather oversold reading. as the days went on from that initial price drop we trended lower however the RSI continued to grind its way higher eventually making a HIGHER low while the price of Bitcoin grinded to a LOWER low. this type of divergence is referred to as a "Bullish Divergence"
looking at the yellow box I labeled "neutral zone" you can see the bottom of the box was support for the price of bitcoin at the same time the RSI reading was supported by the bear market RSI low. since then BITCOIN price had gone up and now coming back to down to retest the "neutral zone" bottom making a HIGHER low on the BITCOIN price while making a LOWER low on the RSI reading. this type of divergence is referred to as a "Hidden Bullish Divergence"
this "Hidden Bullish Divergence" is my thesis on if we have bottomed on BITCOIN and will begin to trend higher.
what do you think?
follow me at @brooklynboy436 (ELM Trading NYC)
