, 2022-12-09 15:00:46,
- Bitcoin price shows bearish divergences between uptrend moves this week.
- Ethereum price may be setting up for a decline toward $1,100.
- XRP price hovers near several indicators in a congestive manner.
The crypto market remains stagnant during the second trading week of December. Following the Producer Price Index data release, the market shows sparse signals to justify entering a confident trade. Traders may want to remain sidelined until a definitive trend is established. This thesis remains neutral but identifies bullish and bearish scenarios for Bitcoin, Ethereum and the XRP price.
Bitcoin price shows divergence
Bitcoin price has forced traders to diver into smaller time frames to interpret where the peer-to-peer digital currency may be headed next. On the 2-hour chart, The November 8 upswing back over the $17,000 barrier breached oversold conditions on the Relative Strength Index (RS). The RSI is an indicator used to assess the strength and intentions of market participants.
The RSI’s breach into oversold territories is a good sign as it implies bulls are still interested in taking a risk in the market. Still, it should be noted that there is a bearish divergence between recent swings. The Monday high at $17,424.95 is displayed as a weaker uptrend move on the RSI compared to the recent Friday high at $17,199.
Bearish divergences are often the catalyst for market reversals. If the market is genuinely bearish, a breach below the…
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