BTC Price Analysis: Bearish Divergence On Weekly Charts Signal Intraday Sideways Market Structure

By Sunil Sharma
Published October 31, 2021 Updated October 31, 2021
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BTC Price Analysis: Bearish Divergence On Weekly Charts Signal Intraday Sideways Market Structure

By Sunil Sharma
Published October 31, 2021 Updated October 31, 2021

Bitcoin (BTC) price after creating a new all time high of $67k is sitting at $61.5k at the time of reporting. Bitcoin Uptrend seems to have slowed on lower time frames due to metaverse coins like Decentraland (MANA) & Sandbox (SAND) stealing major attention post Facebook’s brand update.

What’s New For Bitcoin (BTC)?

  • The recent launch of Bitcoin ETFs has staged new talks on the safety of investment products that are backed by cryptocurrencies. However, blockchain and crypto-based firms relentlessly continue to submit proposals.
  • Steve Wozniak the legendary tech innovator in a recent interview with Yahoo! Finance stated that Bitcoin represents mathematical purity and that the US dollar is not fixed since the government can simply print more money at will and continue to borrow.
  • The Australian Senate Committee recently recommends a clearer, friendly, and robust regulatory framework for the ever-growing crypto ecosystem in the nation.

Let’s analyze the BTCUSDT charts for insights into possible bullish and bearish scenarios.

Bitcoin (BTC) Price Analysis: Weekly Chart 

Looking at the weekly chart of the BTCUSDT, the $61828.0 resistance level continues to resist further price increase since last week’s closing price.

We view a price close above the significant bearish divergence resistance at $67210.00 could confirm a massive demand for BTC and perhaps a quick climb to the $100K round-number resistance.

On the contrary, if the bearish divergence stays true, we could see a price pull-back for the BTCUSDT, where an uptrend is still possible if the price continues to trade above $39520.00 and a deeper correction with a breakdown below the $39520.00 support.

Bitcoin (BTC) Price Analysis: Daily Chart 

The daily time frame shows the BTCUSDT trading within a bullish ascending channel established by opposing bearish and bullish divergence setups with support and resistance levels at $57963.0 and $66663.40.

  • Similar to the weekly time frame, we should see a continuation of the uptrend if we can see a bullish closing price above the $66663.40 resistance.
  • Conversely, a price slump below the $57963.00 would confirm bearish dominance and a change of trend polarity to the downside.

The relative strength index continues to print higher values above level-25 at press time, hence the uptrend is still intact.

Bitcoin (BTC) Price Analysis: 4 hr Chart 

The long candlewick of the 28 Oct 16:00 shows that the BTCUSDT may have found support at the $57000.00 round-number price zone and we could see a further hike from growing demand for Bitcoin. Growing demand for Bitcoin would translate to the BTC price closing above the bearish divergence resistance at $62951.99.

A collapse of the $57K support would suggest a prolonged price correction to the downside.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Sunil Sharma
294 Articles
Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO's in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com

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