Bitcoin bearish divergence on weekly chart must be avoided!

Bitcoin, the world's biggest cryptocurrency might have to suffer a hard blow if the weekly chart experiences a bearish divergence
Bitcoin, the world's biggest cryptocurrency might have to suffer a hard blow if the weekly chart experiences a bearish divergence

Bitcoin, the world’s biggest cryptocurrency, might have to suffer a hard blow if the weekly chart experiences a bearish divergence. However, before we get into details, it is important to understand the current sentiment surrounding the world’s biggest cryptocurrency. 

BTC opened Tuesday’s daily candle at a price of $57.7k and reached a daily high of $59.1k following MicroStrategy’s Bitcoin shopping. However, in an attempt to breach the resistance, the prices fell by nearly 3% as the world’s biggest cryptocurrency dropped to a daily low of $55.8k. The current price of the token stands at $57k, which was regained as support a week ago.

As per CoinMarketCap, Bitcoin’s trading volume in the past 24 hours rose by 19.75%, standing at $39.3 billion. On the other hand, the market cap of the token dropped by 2% and is currently at $1.076 trillion. As a result, the market dominance of Bitcoin fell to 41.17%.

Bitcoin price analysis via indicators

After the PlanB S2F prediction failure, investors are wondering what the next move is. In the weekly chart below, we can see that the MACD line (blue) and the signal (orange) are very close, and changes of a bearish divergence are high. 

If the prices were to fall further and we see a bearish divergence in the weekly chart, the Bitcoin price might crash on the weekly chart. 

On the other hand, TheCoinRise witnessed that an indicator shows pro traders becoming bullish on Bitcoin price.

Bitcoin price analysis
Bitcoin price chart by TradingView

The RSI levels are bearish on the daily chart, trying to move into the bearish region. Currently, the gradient is slightly negative, indicating a drop in bullish momentum.

The MACD line on the 1-day chart is currently below the price movement, and if we witness a bullish divergence on the daily chart, a trend reversal will happen, and the chances of bearish divergence on the weekly chart will fall to zero.

Bitcoin price analysis
Bitcoin price chart by TradingView

The price action is below the 50-day Moving Average, which is an important support zone. If bulls are back in charge, they will try to acquire this important MA.

Bitcoin price fractal rest in the lower region of the Bollinger Bands after a failed breakdown attempt from the lower end.

Bitcoin price analysis
Bitcoin price chart by TradingView

The weekly and daily charts show that two opposite kinds of divergence are possible. If the daily chart fails to show some greenish candles, the weekly chart might end up disappointing a lot of investors. 

However, the long-term perspective of the token is still bullish as recently, Bitcoin surpassed PayPal in dollar volume for transactions processed.