Bitcoin’s bearish divergence leaves crypto unfazed as price continues to climb

  • 12 July 2019, Friday, 09:40

Bitcoin’s price fluctuation has been the talk of the town for a long time now, and the number of mainstream investors talking about the world’s largest digital asset has also risen. A recent analysis has shown that the fall of volume in the Bitcoin ecosystem coincided with the bearish divergences of BTC’s 12 hour, 1 day, 2 day and 3 day spectrum.

The bearish divergences came at a time when Bitcoin was gaining slightly in value, with the cryptocurrency trading at $11,656 after a 3.56 percent hike in less than an hour. The king coin held a market cap of $208.199 billion, with a 24-hour trading volume of $26.831 billion. Ryan Bauer, a cryptocurrency enthusiast, tweeted,

“I think we get one more move up to the mid $12k’s for Bitcoin sending the alts even lower one final time.”

Bearish divergence was shown by the MACD indicator when Bitcoin tried to go for a bullish crossover, but failed. The MACD histogram was a mix of bearish and bullish signals, with the bullish side of the spectrum gaining in dominance.

Bitcoin’s price was caught in a bearish trap, following which there was hardly any significant movement on the charts. This condition was changed after major mainstream players commented on the cryptocurrency, riling up the financial ecosystem. Positive comments came from Jerome Powell, Chairman of the Federal Reserve, who insinuated that Bitcoin might have a place in the world. Powell’s comments came at a time when he was questioned about the possible threat to fiat currencies, if crypto became mainstream. The Chairman added,

“It’s [Bitcoin] a store of value. It’s a speculative store of value like gold. People have been talking about it since cryptocurrencies emerged but we haven’t seen it but that’s not to say we won’t see it. If we do see it, yes you could see a return to an era in the US when we had multiple different currencies.”

The Federal Reserve’s sentiment was however, not shared by United States President Donald Trump, who was adamant that Bitcoin and everything crypto was a sham. His tweet read,

“I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity.”

Bitcoin’s present behavior was contrary to what it underwent just after President Trump’s tweet, when the cryptocurrency fell by 3 percent in the span of an hour and a half.