Our last signal closed at stop-loss. It was based on 4h true divergence. It was not so strong, stop-loss was small. Everything is OK. Today I want to show you the condition for the trend reverse to the upside.
First of all let’s take a look at the true bearish divergence with MACD which was flashed at the Bitcoin’s ATH. You can find this signal on my TradingView account. We can see that on the daily chart it was an extremely strong signal. Now we can see the potential true bullish enhanced divergence. But…. it’s only potential. If we will se the increasing column on the MACD chart while the price fall below $41900 – the bullish scenario confirmed.
The bad scenario is the rapid impulse to the downside below $40000 which will break the divergence. In this case we should wait for the signal for a long time. What is our long run plan? Now we have no opened BTC positions, we are going to open it when the bullish divergence will be confirmed. In the opposite case we are going to wait for this the strongest signals. Also I am going to publish short term deals as I did, now we have not such signals.
Bitcoin – the best and worst scenarios