Bearish Divergence Signals Trouble for Bitcoin’s Election Night Rally
Bitcoin retraced its way back to the $14,000-level on US election night as investors pinned hopes on a clear win for Joe Biden.
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Yearn Finance’s governance token YFI was trading lower on Wednesday as its short-term charts warned about a growing bearish divergence. Yearn Finance's bearish divergence, as spotted by Calm Trader. Source: YFIUSD on TradingView.com The said oscillator, first spotted by a pseudonymous analyst, showed the YFI price moving upward against a falling Relative Strength Indicator. Traders […]
The positivity in the Bitcoin market leading up to the US Presidential election was warranted in our opinion, as is the consolidation the market is currently ranging within. While we are relatively neutral on the market for the time being, our long term bias remains bullish. Following what ended up being a surprise Trump win in the U.S. elections last week, the price of Bitcoin continued its upward move that night, however, has been on a downward trajectory ever since. From a fundamental perspective, we believe much of this slide has to do with “buy the rumor, sell the news” traders taking....
Shiba Inu's massive gains all across October may pare on potential bearish divergence signals and an overvalued relative strength index. Shiba Inu (SHIB) may see a pullback by almost 25%-35% on fears that the cryptocurrency's excessive price rally in October has left it overvalued, a key indicator shows.Dubbed Relative Strength Index (RSI), the indicator measures the magnitude of an instrument's recent price changes to evaluate its oversold and overbought conditions. The result can be anywhere between the number 0 and 100, with a reading below 30 showing the instrument's oversold and above....
The treasury market is spelling trouble in the broader financial system, making the case for bitcoin investment.
Bitcoin price holds a sideways course since the $550 high, and a brief advancing wave has paused at the time of writing. Some bearish technical indications are evident in the chart, but be cautious of selling just yet. Bitcoin price made a run for the upside during the hours prior to this analysis report. As we can see from the various magenta annotations in the chart, the move has caused divergence in various indicators and there are technical reasons to believe that price will turn down – even if it is just briefly. There is a caveat and it will be pointed out after looking at the....