Bitcoin
Analyst: Bitcoin is Forming a Grave Bearish Divergence on Its Macro Chart
Cole Petersen | Dec 02, 2020 | 23:00
- Bitcoin has been struggling to hold above $19,000 following its latest rejection around its all-time highs
- The selling pressure at this level has proven to be quite intense, and it remains unclear as to when bulls will be able to surmount it
- For this region to be broken, Bitcoin’s buyers will first have to show some greater signs of strength, as they are currently struggling to hold the crypto above $19,000
- A continued bout of trading below this level could work in bears’ favor and potentially lead to serious downside
- This comes as one trader notes that BTC is forming a potentially grave bearish divergence on its daily chart
Bitcoin and the entire crypto market are consolidating following the recent $19,800 rejection. As expected by many analysts, the selling pressure at the crypto’s all-time highs is quite intense.
It appears to be degrading each time it is tested, as BTC has been setting higher lows following each rejection here. This is a positive sign that may mean a breakout rally is brewing.
This strength may be reverted, however, as the cryptocurrency is beginning to show some signs of weakness due to a bearish divergence forming on its daily chart. One analyst is looking towards this as a potentially grave sign.
Bitcoin Struggles to Reclaim $19,000 as Consolidation Phase Kicks Off
Over the past few days, Bitcoin has made multiple failed attempts to break above $19,800. The selling pressure here is intense, and each attempt has resulted in it facing massive selloffs.
That being said, the intensity of each selloff seen following rejections at this level has subsided greatly with each test, which is a testament to growing weakness amongst bears.
Bitcoin’s inability to gain a strong and stable foothold above $19,000, however, may be a grim sign for its outlook.
BTC is Forming a Grave Bearish Divergence
One trader recently observed the formation of a bearish RSI divergence on Bitcoin’s daily chart.
This pattern could forecast an imminent trend change back into bears’ favor and could be bolstered by any high time frame close below $19,000.
“BTC possible bearish RSI divergence forming on the daily,” he said while pointing to the below chart.
Image Courtesy of Jonny Moe. Source: BTCUSD on TradingView.
The coming few days should shine a light on Bitcoin’s near-term outlook, as any continued bout of trading below $19,000 could lead it to see some serious weakness in the days and weeks ahead.
Featured image from Unsplash. Charts from TradingView.
