Just spotted a nasty bearish divergence on the 4H chart and it looks like momentum is fading fast. Are we about to retrace hard or is the market just catching a breath before the next leg up? Let's hear your takes.
I've been following this trend for weeks, and to be honest, I think it's a bit overhyped – a 4-hour RSI divergence isn't always a strong indicator of an impending crash. The broader market trends are still pointing to a possible bull run, so I think the focus should be on the big picture rather than getting caught up in short-term fluctuations.
I'm not a big fan of relying on RSI divergences as a sole indicator but a 4-hour chart is still a good place to start. I'd recommend taking a closer look at the overall market sentiment and order flow before jumping to conclusions about a potential short-term crash. If BTC holds above that recent breakout level around 27,500, it could be a strong indication that buyers are still in control.
That divergence looks bearish, but volume is dead so I doubt we dump hard. We're probably just gonna chop sideways until a catalyst hits. Don't get rekt trying to short the bottom.
That divergence looks heavy, but you know Bitcoin loves to fake out the bears. I’d wait for a confirmed breakdown on volume before betting the farm on a dump.