Bitcoin Creates Another Double Top Paired with Bearish Divergence

2020-11-4 12:36

On Nov 3, Bitcoin (BTC) increased significantly to reach another high above $14,000. However, the higher prices could not be sustained and the price dropped back shortly afterward.

BTC is expected to eventually break down from the parallel channel it’s currently trading in.

Questionable Bitcoin Bearish Divergence

Yesterday, the Bitcoin price increased significantly and created a bullish engulfing candlestick to reach a high of $14,083, only slightly below that of Oct 31.

The high was combined with a considerable bearish divergence in the RSI. The MACD is also decreasing, as is the Stochastic oscillator, which could make a bearish cross if the descent continues.

While there are more than 16 hours until the daily close, the price has already begun to create a bearish engulfing candlestick, and has dropped below yesterday’s open of $13,578.

BTC Chart By TradingView

In the chart below, regular divergences are shown with solid lines, while hidden divergences are denoted by dashed lines.

During the Oct 27-Oct 31 highs, the BTC price and RSI created a significant bearish divergence (solid black), but followed it up with a hidden bullish divergence the next day (dashed black), causing another price increase.

Yesterday, another bearish divergence was recorded (solid blue), and the price has been decreasing since. Until the daily candle closes, it is not clear whether another hidden bullish divergence will be recorded (dashed blue).

A close below $13,653 would invalidate the hidden bullish divergence and would suggest that the price will decrease as a result.

BTC Chart By TradingView Parallel Channel Overview

Since Oct 26, the Bitcoin price has been trading inside a parallel ascending channel, a movement that is likely to be corrective.

The previous two highs made on Oct 27-31,(red arrows) were made just under the resistance line of the channel. On the contrary, last night’s high failed to come close to the resistance line and created a lower high instead.

This is a sign of weakness, and when combined with the bearish divergence and the presence of the channel, suggests an eventual breakdown.

If a breakdown scenario continues to play out, the price could drop all the way to the support area between $12,700-$12,800.

BTC Chart By TradingView

The shorter-term chart also shows a pronounced bearish divergence present in both the RSI and the MACD.

This supports the possibility of a price decrease towards the aforementioned support area at $12,700-$12,800. While there is a minor support level near $13,000, the fact that it is so close to the support line of the channel makes it more likely that the price drops to the second support zone.

BTC Chart By TradingView Conclusion

To conclude, the multiple bearish divergences and the fact that the price is trading inside a parallel channel make it likely that BTC is correcting.

A breakdown from the current parallel channel could take the price towards the support levels outlined above.

For BeInCrypto’s previous Bitcoin analysis, click here!

Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.

The post Bitcoin Creates Another Double Top Paired with Bearish Divergence appeared first on BeInCrypto.

origin »

Bitcoin (BTC) на Currencies.ru

$ 105638.34 (-0.04%)
Объем 24H $54.869b
Изменеия 24h: 3.50 %, 7d: 1.00 %
Cегодня L: $103456.85 - H: $106219.15
Капитализация $2093.457b Rank 1
Цена в час новости $ 13809.41 (664.97%)

btc bitcoin another afterward expected shortly dropped

Источник: beincrypto.com

btc bitcoin → Результатов: 126


Bitcoin May Hit $1.5 Million By 2035 According To Metcalfe’s Law, Analyst Predicts

As Bitcoin (BTC) continues its pullback into the low $90,000 range, analysts are divided on how much further the top cryptocurrency might fall before a potential bounce. However, long-term market observers remain confident, emphasizing that short-term price action does not alter their belief in BTC’s eventual rise to a million dollars or more in the coming years.

2025-1-10 09:30


Фото:

MicroStrategy’s smallest Bitcoin acquisition in 8 weeks sees BTC drop to $92,000

Bitcoin’s price fell by 2% within an hour after MicroStrategy announced its eighth consecutive weekly BTC acquisition. According to CryptoSlate’s data, the market reaction was less enthusiastic about the firm’s latest Bitcoin purchase, which dragged BTC down to $92,900 at the time of writing —a 10% drop from its record high of over $108,000.

2024-12-31 19:00


дальше еще 77 новостей →

Партнеры Currencies.ru



Реклама на Currencies.ru

Самое свежее на Currencies.ru

Ethereum (ETH) Weekly RSI Falls to New All-Time Low

Ethereum (ETH) has reclaimed a short-term support level and in the process created its first higher low since June 18. The post Ethereum (ETH) Weekly RSI Falls to New All-Time Low appeared first on BeInCrypto.

DASH Heads Toward Resistance After Reclaiming Range Low

The Dash (DASH) price has reclaimed an important support level after briefly deviating below it. While DASH/USD is expected to increase toward the resistance areas outlined below, the DASH/BTC pair is expected to continue decreasing.

Bitcoin Adds 10% In a Day, Reaches Long-Term Resistance

The Bitcoin (BTC) price created a bullish engulfing candlestick on Nov 5, reaching a high of $15,570 to mark a 10% gain for the day. While the price has reached an important resistance area that could act as the top, there are no signs of weakness yet in the trend.

OCEAN Falls Back to Support and Shows Strength

The Ocean Protocol (OCEAN) price is in the process of validating an important area as support. As long as the price is trading above this level, the trend is considered bullish. On the contrary, the OCEAN/BTC pair looks bearish unless it can break out above a descending resistance line that’s been holding it back.