Bitcoin – Lots of bad signals appear

The price of Bitcoin (BTC) is under severe pressure from the appearance of a bearish divergence to the point of the formation of a reversal pattern. The support zone of 58,000-60,000 plays a crucial role in the trend of BTC in the following months.

The appearance of bearish divergence

After an impressive series of price increases since mid-July 2021, BTC crossed the $ 60,000 mark for the second time this year and continued to hit a new all-time high on November 10, 2021.

However, this uptrend is weakening and is likely to reverse in the short term when the bearish divergence signal appears between price, the MACD and the Relative Strength Index (RSI).

In addition, the MACD maintained its downtrend after breaking the signal line. The RSI continues to slide below the 50 mark. These signals suggest the downside risk is still there.

Source: TradingView and Bitstamp

Is the past repeating itself?

The appearance of a bearish divergence in April 2021 accompanied by a break in the line SMA 50 the day made BTC quickly lost more than 40% of its value.

Again the appearance of divergences in November 2021 with the price BTC test the road SMA 50 The day creates a pessimistic mood in the market.

Source: TradingView and Bitstamp

The 58,000-60,000 area will be crucial support

Besides the pressure from divergence, BTC Faced with another problem is the formation of the double top reversal pattern (complex shape).

The 58,000-60,000 range is viewed by technical analysts as a support zone that will play a critical role in the upcoming near-term development of the stock market. BTC. This support serves both as a segment of the reversal pattern and as a strong line of support for SMA 50 Day. So if the pressure to sell continues to increase, BTC If you lose that area, the situation becomes quite pessimistic.

At this point, the short-term upward trend line from July 2021 and the line begins SMA 20Again, 0 days are the closest support for BTC.

On the contrary, should this zone persist again, the situation will be more optimistic and the upward trend from July 2021 will continue to help. BTC to the next historical milestones.

Source: TradingView and Bitstamp

Technical Analysis Department, Vietstock Consulting Department