Hello guys,
Today we are taking a look at the BTCUSD chart again. A couple of days ago in one of the posts, BTCUSD formed a regular bearish divergence which was confirmed by a dead cross of the RSI-Oscillator on the daily chart.
Looking forward, the same BTCUSD though not yet confirmed by a golden cross of the oscillator, is now forming a hidden divergence in anticipation.
Zooming out to the weekly charts of the BTCUSD, we can clearly see all the divergence set ups, both bullish and bearish.
As a confirmation that BTCUSD is in a strong bullish trend, we can see that most of the bearish divergence signals failed by a price close above the last established high.
Considering that price has closed above the upper channel, it signifies profit taking opportunities.
Conclusion
Though currently the BTCUSD is in a very strong bullish trend and there is a high probability of price going beyond the $5000 level, we should take note that the level above the channel is a profit taking zone.
Take note that the bearish divergence will only be confirmed by a dead cross of the RSI-oscillator.
Happy trading,Cheers!