Btc Hidden Bearish Divergence
A hidden bearish divergence in Bitcoin trading chart suggests that the asset is likely to continue a downtrend.
Divergence in trading refers to a situation where the price action of an asset is moving in the opposite direction of a technical indicators, such as the Stoch Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD).
In a hidden bearish divergence, the price makes a lower high (which is less than the previous high), while the indicator makes a higher high. This is considered a sign of a potential continuation of a downtrend.
In simpler terms, despite the indicator suggesting a strengthening market (with higher highs), the price action is not confirming this (with lower highs). This divergence can be a signal that the selling pressure is still present and that the downtrend may continue.
However, it's important to note that while technical analysis tools like divergences can be useful, they are not foolproof and should be used in conjunction with other market analysis techniques and tools.
next possible support 19.5k to 20.4k
#shortbtc #BTC
Divergence in trading refers to a situation where the price action of an asset is moving in the opposite direction of a technical indicators, such as the Stoch Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD).
In a hidden bearish divergence, the price makes a lower high (which is less than the previous high), while the indicator makes a higher high. This is considered a sign of a potential continuation of a downtrend.
In simpler terms, despite the indicator suggesting a strengthening market (with higher highs), the price action is not confirming this (with lower highs). This divergence can be a signal that the selling pressure is still present and that the downtrend may continue.
However, it's important to note that while technical analysis tools like divergences can be useful, they are not foolproof and should be used in conjunction with other market analysis techniques and tools.
next possible support 19.5k to 20.4k
#shortbtc #BTC