Bitcoin RSI divergence. 1-hour chart.

27 Mac 2018

Greetings.

Since posting the last chart a divergence has now formed on the 1-hour chart.

I am travelling for the next 1½ hour so will just post this really quickly and update it later when i arrive.

For now just be aware of this divergence, indicating selling momemtum decreasing.

27 Mac 2018

Nota

Just as a short update before i board the plane: Sellers do seem to have pushed the price hard, and we might see more panic sell-offs. But even the 4-hour chart shows a divergence forming

27 Mac 2018

Nota

Update: Price made a small spike up to the 0.236 fib at 8031 before retracing back to the 7940 area. Divergence is still valid, and we could see a push to the 0.382 fib around 8200 or even the 0.5 fib around 8350 if FOMO sets in with the buyers. However since overall market sentiment is still bearish i would consider taking some profits at the area around the 0.382 fib.

27 Mac 2018

Nota

So the divergence was pretty effective again this time, but the price currently climbs very slowly, indicating that buyers are very cautious, since panic sell-offs could happen at any moment again.

The price is above the 0.236 fib once again, which could be a good place to take some profits at least.

We will see during the next hours if buyers enter the market more strongly and make a small rally, or if panic sell-offs occur once again.

As always consider setting stop loss to breakeven.

27 Mac 2018

Nota

1 hour chart still looking fine.

However, there is an exaggerated divergence forming on the 15-minute chart, which could indicate buying momemtum slowing in the short term.

This could be another indicator to take some profit now, and leave the rest of the position open if price climbs higher.

27 Mac 2018

Nota

28 Mac 2018

Nota

Final update for this chart.

Resumé: When the chart was first posted, RSI divergence on the 1-hour showed selling momentum decreasing. Shortly thereafter buyers entered and pushed the price to the 8100 range. However market sentiment remained bearish and later a high exaggerated RSI divergence formed on the 15-minute chart (posted in the comment), which showed buyers losing momentum in the chart term.

That is why i wrote, it would be a good idea to take some profits at that point. And shortly after we saw that the buying momentum could not hold the price, and sellers pushed it back down to the 7800 range.

Since then buying momentum is increasing slowly and cautiously. Buyers are definitely aware, that we might see panic sell-offs at any moment again.

Overall i would still consider the chart first posted to be a nice indication of a possible long entry. Price went above the 0.236, which happens most of the time, but only got halfway to the 0.382 because sellers simply entered too strongly this time.

Right now there is no clear divergence on any timeframes, so i will be posting a new chart once we see more price development.

Hope you liked this idea.