Bitcoin price struck a corrective low earlier today and has since reacted to the upside. However, as is usually the case during downward price corrections, there are now plenty of technical barriers to the upside. If price is to advance from the current chart position, it still has a few resistance layers to surmount.
Bitcoin Price Analysis
Time of analysis: 15h10 UTC
BTC-China 1-Hour Chart
From the analysis pages of xbt.social, earlier today:
Observations and comments based on the 1-hour BTC-China chart:
Price struck a low earlier today, and the 1-hour indicators formed clear divergence to the new corrective price low. The stochastics (top) indicate their divergence with a blue dot, and RSI (second from top) and MACD (bottom) indicate a higher low. Regular divergence is a critical indicator signal of, at least, short term reversal.
The divergence implied that price would move higher – and it did – until the present reverse divergence seen as green dots in the RSI indicator.