Bitcoin RSI divergence. 1-hour chart

30 mar 2018

Greetings.

Selling pressure continued for the last 24 hours and drove the price far down.

Right now a divergence is forming on the 1-hour chart, which could indicate a short term reversal due to selling momentum potentially slowing.

Be aware of the market situation, that is very panicky, and we could easily see further drops due to further panic.

This is a risky idea due to the current market situation.

Will update as price movement occurs.

30 mar 2018

Nota

Cautious movement upwards. Divergence still valid so far.

30 mar 2018

Nota

Divergence proved reliable so far, reaching the 0.382 fib pretty quick. As always, when in a bear market, this could be a good place to take some profit and let the rest run.

30 mar 2018

Nota

Also - due to the panic state of the market i will recommend setting stops to breakeven after first profit is taken.

30 mar 2018

Nota

0.5 fib hit.

31 mar 2018

Trade chiuso: obiettivo raggiunto

Final update and resumé:

This time the divergence proved to be effective for a long position, even though market remains bearish. Selling momentum was decreasing, which allowed buyers an opportunity to step in temporarily.

From the time the chart was posted, price went up and barely touched 0.786 fib before dropping hard again.

Of course profit should be taken early, when market sentiment is bearish, and i closed my own position at the 0.618 fib just below 7000.

Hope you liked this idea.