Bitcoin price faces ‘bearish divergence’ amid $22K correction target
2023.04.11 07:41
Bitcoin (BTC) held $30,000 as support before the April 11 Wall Street opening, with fresh doubts emerging over the rally’s strength.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
BTC price finally tackles $30,000 resistance cloud
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it hit 10-month highs of $30,438 on Bitstamp.
Almost one month in the making, the final surge to $30,000 delighted many traders who considered the move to be a matter of time.
#Bitcoin / $BTC
What I’m watching now pic.twitter.com/8bBheMvqT7
— K A L E O (@CryptoKaleo) April 11, 2023
Having uploaded a roadmap showing BTC/USD continuing to gain, Crypto Kaleo argued that Bitcoin was still the best investment allocation for capital, rather than cash or altcoins, at current prices.
“Bitcoin is breaking out, of course all of the USD charts are going to look decently bullish,” part of the day’s Twitter commentary stated.
“Look at the alt charts vs. BTC. I don’t see any that I like atm. Thus – while you might still be up in USD w/ some alt positions, your capital is still best allocated stacking more Bitcoin.”
Related: Crypto audits and bug bounties are broken: Here’s how to fix them
Daan Crypto Trades meanwhile gave more attention to altcoins, entertaining the idea that BTC/USD may now consolidate.
“It will be interesting to see what happens around here. I suspect we might see it cooling off a little, which means ALT/BTC pairs should gain some ground,” he wrote in part of a reaction tweet.
He added that Bitcoin market dominance might continue to increase if spot price gains remain brisk.
BTC crypto market cap dominance annotated chart. Source: Daan Crypto Trades/ Twitter
“Triple bearish divergence”
Despite regaining what had long been a mass resistance zone, Bitcoin did not inspire everyone with its assault.
Related: CPI to spark dollar ‘massacre’ — 5 things to know in Bitcoin this week
With nearly $100 million in shorts liquidated on April 10 through April 11, analytics resource Skew noted that there was “air” on the Binance order book below the $30,000 mark during the breakout.
$BTC Binance Spot
Close to $30K now, filling more limit sell orders.
Note the gap between large bids in the orderbook.Comments on chart below: pic.twitter.com/LH20GiQIDM
— Skew Δ (@52kskew) April 10, 2023
Meanwhile, Venturefounder, a contributor to on-chain analytics firm CryptoQuant, warned of a “bearish divergence” between the spot price and relative strength index (RSI) on the daily chart.
“Looking for a short term correction down to at least $25k sometimes soon, potentially down to $22k,” part of a prediction revealed.
BTC/USD annotated chart. Source: Venturefounder/ Twitter
Trader Cheds similarly eyed what he called a “triple bearish divergence” with on-balance volume (OBV), considering a short position but being “not in one” overnight.
“Congratulations to the bulls that were respectful and were calling for 30k,” Il Capo of Crypto, the Twitter trader infamous for his bearish BTC price prognosis, added in a tweet on the day.
“My bearish scenario is NOT invalidated yet.”
Some were critical of the bearish divergence thesis, with popular trader Crypto Ed dismissing the idea on slightly longer 3-day timeframes.
BTC/USD annotated chart. Source: Crypto Ed/ Twitter
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
