Bitcoin Climbs as Long-Term Risk Falls: Healthy Market Divergence Forms
Bitcoin is at a pivotal juncture as the market digests Wednesday’s 25bps interest rate cut from the Federal Reserve, a decision that has shifted market dynamics into a new phase. Following the announcement, BTC has entered a period of consolidation, with price holding steady as investors weigh the potential for another leg higher. While short-term […]
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Dear trader, Welcome to the third episode of our Decadays Market Report series. The first two articles are available Part 1 and Part 2. Remember, in our previous article, I showed you a bearish divergence in progress. Then I said: “the price of Bitcoin may not recover in the coming days. Instead, the risk is to see a new strong drop.” Since then, what happened? As you can see on the chart below, the drop didn’t happen right away and the mid-term bearish trend ended. However, a second bearish divergence started on the 26th and the price finally crashed again. My sincere apologies for my bad....
Not much happened today in the price action of litecoin. As we can see in the 1H chart, price has been drifting sideways since the cryptocurrency rallied from around 1.60 to about 1.82. While price is indeed still in this consolidation range, we can see a bearish bias. Litecoin (LTCUSD) 1H Chart April 1, 2015. 1) The 200-, 100-, and 50-hour simple moving averages (SMAs) are in bearish alignment and are sloping down. 2) Price is starting to hold below the cluster of these SMAs, which shows bearish bias. 3) The RSI has held below 60, and has tagged 30, showing development of bearish....
The relative strength index is making lower highs while correcting from its overbought area. The run-up in the Bitcoin (BTC) price toward $50,000 last week risks exhaustion due to a mismatch between the cryptocurrency's price and momentum trends.So it appears the Bitcoin's price and relative strength index (RSI) have been moving in the opposite direction since late July. In doing so, even a strong push higher in the BTC/USD bids has coincided with lower peaks in momentum, suggesting that the pair's upside momentum is weakening out.Bearish divergenceA normal RSI momentum tends to tail the....
Bitcoin price hovers above $410 as the market comes face to face with its options. Buy today and risk betting on the reward-halving rally too soon, or sell now to buy into the post-Classic(TM) relief rally later. As anticipated in yesterday’s analysis post, magenta arrows at the top-right of the chart show that MACD has returned to its zero-line, and RSI has peaked above 60. The stochastics (top) will soon group at their maximum value. The RSI peak had formed reverse divergence to a previous RSI peak and the high is not confirmed by price making a similar high above the corresponding price....
Litecoin falls more than 8% to $4.569 as weakness in Bitcoin increases. I had been maintaining that the rise in Litecoin was mainly on account of a strengthening Bitcoin, and Bitcoin's failure to cross the resistance may lead to a decline in Litecoin as well. With this decline, Litecoin has provided a short-term buy opportunity at low risk. Read on below to find out how. Litecoin Chart Structure - Litecoin's recent consolidation occurred at around $4.560-4.570 and the current valuation makes it a low-risk buying opportunity. Fibonacci Retracement - As Litecoin heads south, it is expected....