Bitcoin price forms a double top – again

Bitcoin price forms a double top – again

🚨 BITCOIN FALLING RIGHT NOW????? [Ethereum & Dash Analysis]

Contents

Bitcoin price forms a double top – again
CONTENT

  • Bitcoin is giving strong bearish divergence signals.

  • The price is trading inside an ascending parallel channel.

  • Support is noted around $ 12,700 and $ 13,000.

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The bitcoin rate again broke above the $ 14,000 mark, but could not gain a foothold at these levels and soon rolled back.

Bitcoin price forms a double top - again

Perhaps BTC will eventually make a bearish breakout from the current parallel channel.

What about divergence?

Bitcoin (BTC) formed a bullish engulfing candlestick and marked a high at $ 14,083, just a little short of the maximum reached on October 31.

The formation of the high was accompanied by strong signals of bearish divergence on the RSI. The MACD indicator is also declining, as well as the Stochastic Oscillator, which can form a bearish crossover if the decline develops further.

Although the close of the day is still a long way off, at this point we can see the price attempting to form a bearish engulfing candlestick. The rate sank below yesterday’s opening price of $ 13,578.

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Schedule BTC. Source: TradingView

Bitcoin price forms a double top - again

In the chart below, you can see the standard divergence signals indicated by the solid line and the hidden divergence signals indicated by the dotted line.

Against the background of the formation of highs on October 27-31, the BTC rate and the RSI index formed strong signs of bearish divergence (continuous line), but the next day they were followed by signals of hidden bullish divergence (dashed line), which led to a new rise in price.

The day before, bearish divergence signals (solid blue line) appeared on the charts again, and the pair began to decline. Until we see the candles at the end of today’s daily trading, we cannot say with certainty whether we will receive another batch of hidden bullish divergence signals (dotted blue line).

A close below $ 13,653 will neutralize the Hidden Bullish Divergence forecast and indicate that the price will decline under the influence of the Bearish Divergence.

Schedule BTC. Source: TradingView

Parallel channel

The bitcoin rate has been trading within a parallel ascending channel since October 26. Such dynamics may indicate a correction.

The pair has marked two previous highs from October 27 and 31 (red arrows) directly in the area of ​​the resistance line of this channel. Meanwhile, the most recent maximum could not reach this line. As a result, we got a decreasing maximum.

This is a sign of weakness and, combined with bearish divergence and the presence of a channel, promises a likely bearish breakout for the pair..

In this case, the price may sink to the support area $ 12,700- $ 12,800.

Schedule BTC. Source: TradingView

Shorter-term charts also show clear signs of bearish divergence in RSI and MACD.

This also supports the forecast of a decline in Bitcoin towards the aforementioned $ 12,700- $ 12,800 support area. There is also minor support around $ 13,000, but it goes too close to the channel support line, so the price is unlikely to linger here.

Schedule BTC. Source: TradingView

Conclusion

Thus, numerous signals of bearish divergence and trading within the parallel channel promise a correction for the BTC rate..

A bearish breakout from the current parallel channel could send Bitcoin towards the support levels we outlined above.

You can read the previous Bitcoin forecast here.

Bitcoin price forms a double top - again

Disclaimer: Cryptocurrency trading involves a high level of risk and is not suitable for all investors. The views expressed in this forecast do not reflect

Disclaimer

All information, contained on our website, published on principles of good faith and objectivity, and for informational purposes only. The reader bears the full responsibility for any actions, committed by him on the basis of information, obtained from our website.

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