Bitcoin appears to be struggling to decisively breakout to new highs, with a clear bearish momentum divergence present on the daily chart I would heed caution, particularly given the divergence has occurred just after making a slightly higher ATH.
This would lead me to believe that we can expect either a selloff or a period of consolidation to occur, similar to the last two instances of bearish momentum divergence in both May and August.
The occurrence in May was followed by a period of consolidation.
Whereas the occurrence in August was followed by a period of consolidation and a move to the downside.
Consequently I am expecting some sideways action at a minimum and a slight easing at worst, potentially to the $16,000 USD mark
On a longer timeframe Bitcoin is running quite hot, with price flirting with the top of the Keltner channel.
The weekly however is looking quite nice, with a strong recovery from the recent selloff, this bodes very well for Bitcoin PROVIDED that this weekly candle is able to finish strong with momentum and conviction (closing at or near the high, with minimal wicking is preferred).
Overall I expect to see the period of consolidation that I discussed in my prior Bitcoin piece (link below) with the potential for a nice easing to around $16,000 USD, which would provide a nice secondary entry level.
-TradingEdge
This would lead me to believe that we can expect either a selloff or a period of consolidation to occur, similar to the last two instances of bearish momentum divergence in both May and August.
The occurrence in May was followed by a period of consolidation.
Whereas the occurrence in August was followed by a period of consolidation and a move to the downside.
Consequently I am expecting some sideways action at a minimum and a slight easing at worst, potentially to the $16,000 USD mark
On a longer timeframe Bitcoin is running quite hot, with price flirting with the top of the Keltner channel.
The weekly however is looking quite nice, with a strong recovery from the recent selloff, this bodes very well for Bitcoin PROVIDED that this weekly candle is able to finish strong with momentum and conviction (closing at or near the high, with minimal wicking is preferred).
Overall I expect to see the period of consolidation that I discussed in my prior Bitcoin piece (link below) with the potential for a nice easing to around $16,000 USD, which would provide a nice secondary entry level.
-TradingEdge
