Historical Bearish Technical Formation may spell bitcoin Bulls issues
Bitcoin's latest upward momentum has led to a tremendous shift in the overall mood around the crypt markets, as enthusiasm is slightly increasing as more investors believe that BTC's 2018 downturns are really a long-term bottom.
Despite this, one of Bitcoin's basic indicators is currently flashing a bearish signal that has historically been followed by great feedback, which could put BTC's recent price surplus at risk.
Bitcoin (BTC) climbs to over $ 5,300 as the latest Tether-Based Fears Subside [19659004]
At the time of writing, Bitcoin trades up nearly 1% to today's $ 5,310, slightly up from the $ 5,260 daily decline.
Earlier this week, BTC fell from heights of well over $ 5,600 due to news about the New York Attorney General's office claiming that controversial stablecoin Tether and related Bitfinex crypto exchange have been cheating investors and traders.
This news immediately sent Bitcoin and the entire crypto market rolls down, but BTC found good support in the $ 5,200 region that stopped it from falling lower and has made it possible to start climbing higher.
This last straw initially seemed to set the upward speed that Bitcoin formed when it increased to the $ 5,000 region earlier this month, but it was clear that investors were not too fazed by the news, as the scale of impact was limited.
Moon Overlord, a popular cryptocurrency analyst on Twitter, talked about the lack of impact Bitfinex and Tether imbroglio had on the markets of a recent tweet and said:
"For All Rebellion and Reactions from the $ crypto community on Bitfinex / Tether the news is barely noticeable on the $ BTC chart. "
For all the rebellions and reactions of the $ crypto community on the Bitfinex / Tether news, it is barely noticeable [$ $ BTC diagram. pic.twitter.com/LdLzmjHKkQ
̵[ads1]1; Moon Overlord (@MoonOverlord) April 27, 2019
BTCs RSI May Signal That a retrace is close
Although the market's poor reaction To the Tether news can signal both basic strength and growing maturity, Bitcoin's RSI can flash a bearish signal that has historically been followed by major retreats.
HornHairs, another popular crypto analyst on Twitter, talked about this bearish signal in a recent tweet, explaining that over the past five years, bearish RSI deviations on a two-day chart have almost always been followed by a big dip.
"$ BTC #Bitcoin 2D RSI Bear Div Study: In the last 5+ years, there have been only 5 accounts of a bearish RSI divergence on the 2D chart. Today it marks the 6th. The average drawdown after the confirmation of the previous divs before a significant bounce / reversal was -44.25%, "he explained in a recent tweet.
$ BTC #Bitcoin 2D RSI Bear Div Study:
Over the last 5+ years there have been only 5 accounts of a bearish RSI divergence on the 2D chart [19659002] Today it will mark the 6th
The average drawdown after the confirmation of the previous dives before a significant bounce / reversal was -44.25% pic.twitter.com/zXsddqrWyu [19659002] – HornHairs ? (@CryptoHornHairs) April 26, 2019
As the calm weekend trade breaks up and a New Week for trading begins, the validity of this indicator as a bearish signal is likely to become clearer as traders Detects whether Bitcoin has enough to buy pressure to continue increasing higher.
Featured image from Shutterstock.
