Bitcoin Technical Analysis for 01/21/2016 – RSI Divergence on the Charts

Bitcoin jumped from trading in the vicinity of $380, yesterday, to over $420, today. However, the upsurge is already fading as the RSI has started to show a divergence, which indicates lack of momentum. A very similar divergence setup foreshadows the reversal that took place on the 16th.

If price retraces, the pivot zone at $386 is bound to come into play. This level acted as resistance about four times in the past few days, and also as support on the 15th, so this area is very likely to be respected by the market once again.

There is also another important technical level at $375. The market bounced from this level on two separate occasions, once on the 18th and again on the 20th, therefore, this area is of technical significance and should not be overlooked.

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Disclaimer:  This is not trading/investment advice!

Image Source: 1

Chart source: https://www.okcoin.com

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Traderman

Avid blogger, entrepreneur, and cryptocurrency enthusiast. I love writing about cryptocurrency, NFTs, price analysis, and much more!

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