Bitcoin price advanced to a new corrective high today before the market nervously started taking profit below $250 (Bitstamp). The chart technicals imply additional highs are in store.
Bitcoin Price Analysis
Time of analysis: 15h53 UTC
Bitstamp 1-Hour Chart
From the analysis pages of xbt.social, earlier today:
Price advanced to a new corrective high today and the move caused divergence in the momentum indictors as annotated in magenta.
Typically, bitcoin price will now enter a cycle of compounding divergences – with upside divergence alternating with downside reverse divergence. Currently, price seems to be forming the downside divergence whereby RSI (top) will make a lower low in relation to the previous price swing while price makes a higher low.
The cycle should repeat until downside reverse divergence fails to show in RSI and that will be our signal that the final price high is underway. As long as we see downside reverse divergence following upside regular divergence we can expect additional highs.