Bitcoin / US Dollar Technical Analysis, SPOTTED DIVERGENCE

Hey gang,

After the recent Bitcoin ~20% price increase price had to eventually had to eventually cool off. Hard wicks can easily be seen at bot rejection levels, namely the 61.8 fib level from the short side (in the red box) as well as the 175% which was used as a target using the alternate price projection tool (trend based fib extension) taking the high of the 1 wave and projecting from the 2nd wave to give us our 3rd which is where price is currently. For additional confluence price is at a previous resistance level which may not be broken in the first attempt.

Divergences have been spotted on RSI which is overheated, the WaveTrend by LazyBear, and the histogram. Additionally, volume has been declining therefore I see no reason why Bitcoin would go up much further from current levels. What I am offering is a potential roadmap to where price is probable to go. I expect a corrective wave to follow as the 4th followed by a possible truncated 5th given that even though I am a long term bull, I don't believe the bear market is over. I expect to continue to see a trading range for sometime before we eventually break through every resistance level on the chart.

You could see the divergences easier in the following image:

If you haven't figured it out by now I'm not a financial advisor. I'm just a tasty bowl of pasta that likes to chart.

Take care everyone.