Bitcoin Price Chart Gives Hidden Bearish Signal on Daily
Bitcoin price has been consolidating in a tightening range for the better part of the last three months, and the crypto community has been watching and waiting for the first-ever crypto asset to make its next move and choose the trend for the coming year ahead.
Bulls have been unable to push the price to new highs, but bears have equally failed to bring Bitcoin under support in the low $9,000 range. However, a hidden bearish signal just appeared on Bitcoin’s daily chart, and it could indicate that bears may finally win the battle for the short term.
Hidden RSI Bearish Divergence on Bitcoin Price Daily Chart
Crypto analysts and Bitcoin traders often perform detailed technical analysis in order to help them spot trend changes, or predict future price movements. In addition to drawing lines and shapes on charts, these analysts often couple that with the addition of helpful indicators and oscillators that further assist in determining a trading strategy.
Related Reading | Crypto Analyst: Bitcoin Indicator Resembles Mid-2016 Bullish Beginnings
One of the more popular indicators, especially for Bitcoin, the relative strength index, is giving off a “hidden” bearish signal called a hidden bearish divergence, that could suggest that further downside movement should be expected in the coming days.
Hidden bearish RSI divergence on a daily time frame. Alarm!$BTC $BTCUSD #bitcoin pic.twitter.com/RhyH5TxMEJ
— CryptoHamster (@CryptoHamsterIO) September 10, 2019
Hidden bearish divergences occur when the relative strength index achieves a new high, while price fails to do so. This suggests that the price movement didn’t properly reflect the buying pressure indicated by the RSI, and that bears are gaining control over the price action.
RSI divergences are among crypto analyst’s most popular tools in determining potential trend changes and can be used to predict tops and bottoms. Most traders do not recommend taking positions due to hidden divergences but say investors should keep them in mind when looking at the overall analysis and price action before acting on the signal.
Bearish Downside Targets for BTC/USD Pair
Crypto analysts are torn on what the multi-month pattern Bitcoin price has been trading inside. Some say it is a bull flag, symmetrical triangle, or even a descending triangle – and each suggests a different breakout scenario.
If the RSI hidden bearish divergence does play out, Bitcoin price is expected to finally break down from the multi-month structure it has been in. Targets based on these structures would be somewhere around $7,000.
$BTC update: daily is looking bearish now. Shorting it if we break 10.2K. Will be adding if we break 10.150 all the way down to 9874, 9751 and 9427. Heavy resistance between 10.5 and 10.6K.
Or it bounces here at 10.2K or it goes down. pic.twitter.com/xwrXvHUeOC
— Nika (@G_maker) September 10, 2019
Before it reaches such a target, though, bears will have to push Bitcoin price down through $10,150, then additional supports layered throughout the $9,000 range.
Related Reading | Livermore Accumulation Cylinder Suggests Bitcoin To Set New ATH Next Rally
Buyers are said to be waiting to buy the dip around $8,500, so even if the bearish divergence does pan out, and each of the aforementioned price supports are broken through, Bitcoin price still may not reach some of the loftier bear targets out there, as the bull market has proven that each dip in Bitcoin price has been bought up ferociously by bulls.
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