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