Bitcoin Price Action: Lower High for BTC Despite Bullish End to the Week – Blokt

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Bitcoin Daily Chart – Source: Tradingview.com

Despite a bullish end to last week, cryptocurrency market leader Bitcoin has formed a lower high resulting in a more bearish market structure.

Today’s price action is recording a loss which has erased all of yesterdays gains.

Bitcoin 4-Hour Chart – Source: Tradingview.com

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Price is currently trading between two levels, but the chart is forming patterns which would indicate that price is more likely to go downward from here.

Price is trading between the point where price broke bullishly in January at $3620 and $3570 which has acted as both support and resistance in the past.

Today’s downward movements increase the likelihood that we will see further downward movements.

A bearish divergence between the price and RSI on the 4-hour also increases the likelihood that we will see downward movements from here.

A bearish divergence occurs when price forms higher highs despite the RSI forming lower highs.

It shows price continuing to increase despite buying pressure falling.

Key Takeaways:

  • Price has started the week with bearish movements which have erased yesterdays gains.
  • Price is trading between expected support at $3570 and resistance at $3620.
  • A bearish divergence between price and 4-hour RSI increases the likelihood that the next movement we will see will be to the downside.

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DISCLAIMER: Investing or trading in digital assets, such as those featured here, is extremely speculative and carries substantial risk. This analysis should not be considered investment advice, use it for informational purposes only. Historical performance of the assets discussed is not indicative of future performance. Statements, analysis, and information on blokt and associated or linked sites do not necessarily match the opinion of blokt. This analysis should not be interpreted as advice to buy, sell or hold and should not be taken as an endorsement or recommendation of a particular asset.

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