Derived from Bijié Wǎng, a CMT-certified analyst, Tony Severino, has identified a 'triple bearish divergence' in Bitcoin's price action, suggesting the uptrend may be losing momentum. Severino explained that the pattern involves three consecutive higher price highs paired with three lower highs in technical indicators, signaling a weakening trend. He mapped this divergence onto Bitcoin's bull cycle, using key price levels and Elliott Wave theory to support his analysis. Severino emphasized that while the divergence is a warning sign, it requires confirmation signals such as a breakdown of key moving averages or trend lines before taking action. He also outlined potential downside targets using Fibonacci retracement levels, estimating a possible 60-70% drawdown from the recent peak. As of the report, Bitcoin traded at $87,658.
Bitcoin Shows Triple Bearish Divergence, CMT Analyst Issues Warning
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