Bitcoin Price Chart Gives Hidden Bearish Signal on Daily

Tony "The Bull" Severino

5 years ago

3 mins read

bitcoin price crypto hidden bearish divergence

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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.

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.

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.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

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In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

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Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.