Bitcoin has been trading relatively flat in the last 24 hours as the leading cryptocurrency took a slight dip. There are bearish divergences between uptrend moves. In the second trading week of December, the crypto market remains stagnant.
Analysts suggest that traders remain sidelined until a definitive trend is established. This is somewhat neutral but identifies bullish and bearish scenarios for Bitcoin, Ethereum, and Ripples XRP tokens.
Bitcoin, down by 0.37% in the last 24 hours, was trading at $17,149; and Ethereum was holding at $1,265. The altcoins are in the red zone with Chainlink being the biggest loser. It’s down by 2.41%. Polkadot lost 1.91%, Polygon 1.90%, and Litecoin 1.85%.
Traders have divided themselves into smaller time frames due to BTC prices to interpret where the peer-to-peer digital currency may be headed. The November 8 upswing back over the $17,000 barrier breached oversold conditions, on the two-hour chart, on the relative strength index (RSI). The RSI indicator assesses the strength and intentions of market participants. Analysts believe the RSI’s breach into oversold territories is a good sign as it implies bulls are still interested in taking a risk in the market. However, there is a divergence between recent swings. This can be seen in Monday’s high of $17,424 which was displayed as a weaker uptrend move on the RSI compared to Friday’s high at $17,199.
Bearish divergences can be used as catalysts for market reversals. With the market really being bearish, a breach below the 8-day exponential moving average at $17,010 could induce a decline into the $16,200 support zone. This results in a 5% decline.