Bitcoin Technical Analysis - 18th August 2020
Last week, we shared this chart of BTC. Even after an H4 bearish divergence, BTC managed to break the trend line and form a bullish continuation pattern.
A few days later, BTC broke down the trend line, making a fakeout, but wicks downward showed a nice rejection, making it impossible for BTC to go lower.
The beauty of the last upward move to $12k + is terrific. It pumped and invalidated the old Bearish Divergence by breaking the resistance trendline (blue) on the RSI.
However, this pump created another Bearish divergence that we can monitor more closely on the Daily Chart and a possible Rising Wedge pattern.
Last but not least, the Bitcoin CME Futures Chart shows an uptrend ruled by the blue trendline. However, 2 gaps are now showing on the chart. The first one is sitting at $11,700, and the second one around $9,650.
A theory says that most gaps must be filled, so we can expect a move downward to fill those zones, but it is quite impossible to say when with good accuracy.