BTCUSD Price Technical Analysis – Bearish Divergence Visible!

BTCUSD Price Technical Analysis - Bearish Divergence Visible!

BTCUSD Price Key Highlights

  • BTCUSD price has been slowly trending higher, as it has been moving inside an ascending channel on its 4-hour time frame.
  • Price is currently testing the top of the rising range, with a bearish divergence hinting that a drop back towards support may be in order.

BTCUSD price could be in for a correction in its latest uptrend, as technical indicators are hinting at trend exhaustion.

Higher highs and lower highs

A bearish divergence has materialized on the 4-hour chart of BTCUSD price, with stochastic making lower highs and price drawing higher highs. RSI is also giving the same signal, as the oscillator made lower highs as well.

BTCUSD Price Technical Analysis - Bearish Divergence Visible!

The 100 SMA is safely above the 200 SMA, which means that the longer-term climb could still carry on, although buyers might need to regain energy on a pullback to the channel support. This is located around the $265 level, which is also close to the dynamic support at the 100 SMA.

However, stronger upside momentum could ensue once price breaks past the previous highs around $290 and go for a test of the psychological resistance at $300, at which plenty of sell orders or profit-taking levels are set.

Intraday support level – $265

Intraday resistance level – $290

Charts from TradingView

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Samuel Rae is an active retail trader across a variety of assets, including currencies, stocks and commodities and the author of Diary of a Currency Trader (Harriman House). His personal strategy focuses primarily on classical technical charting patterns with a fundamentally supportive bias, combined with a strict, risk management-driven approach to entries and exits. He is an Economics graduate from Manchester University, UK.