Bitcoin BTC Price Analysis: Bearish Divergence on Weekly Time Frame Erased Earlier Gains Of The Week, Prepares the BTC For a Price Correction
Recent news headlines show that Wall Street welcomes the first bitcoin exchange trading fund (ETF) with Proshares Bitcoin Strategy (BITO) listed on the New York stock exchange.
The fund brought about 1 billion in trading volume in one day, influencing bitcoin price to an all-time high of $67,000, though bitcoin price later corrected by about 11% raising fears of sell-offs.
We believe you must have heard of the popular quote “buy the rumor, sell the news” correction right? There have been historic multi-month price slumps associated with major launches of bitcoin-related products. Lark Davis (@TheCryptoLark) October 8, 2021- thinks this will play out for the ETF as in the likes of the 2017 launch of CME that was followed by a prolonged bearish outlook.
Let’s analyze the BTCUSDT charts for insights into possible bearish and bullish scenarios.
Bitcoin BTC Weekly Chart Analysis
This week Tuesday and Wednesday, some traders got caught in the fear of missing out [FOMO], ignoring the regular bearish divergence pattern on the weekly time frame above. Although the Bitcoin BTC price set a new all-time high at $67000 on most crypto exchanges, it didn’t take long before the bears jumped in after some early bulls started to take some profits off the table.
We expect a dipper price correction if the BTCUSDT exchange rate plunge below the $39600.00 support level.
Bitcoin BTC Daily Chart Analysis
Viewing from the daily time frame, the BTCUSDT appears to be building up a hidden bullish divergence pattern if the BTC price fails to penetrate the $53700.00 support.
The daily chart maintains a steep uptrend as the BTCUSDT trades above level-25. On the other hand, RSI levels below level-25 should confirm a price bottom for the correction wave on the weekly time frame.
Bitcoin BTC 4HR Chart Analysis
Looking at the BTCUSDT from an intraday 4HR level, the largest cryptocurrency by market cap seems to be finding a price floor around the $59562.15 hidden bullish divergence support following a 10% price slump from its new ATH.
The on-chart RSI also signals a shorter range bullish divergence showing confidence towards a price increase at the intraday level.
However, a breakdown of the $59562.14 support would imply bearish sentiment at the intraday level. The intraday sentiment is bullish at press time.