The price failed to form a new high, while the Stochastic indicator remains above the 20 level. This divergence, marked with a red line on the chart, indicates weakening of an upward momentum and increases the probability of a price decline.
The previously noted reversal signal is strengthened by the divergence, recorded on the RSI indicator. The appearance of divergences on various technical indicators increases the probability of a reversal scenario.
The histogram of the MACD indicator remains above the signal line, indicating the local development of an upward movement. However, the indicator indications do not contradict the signal, marked on the chart.
Thus, in terms of Bit.Cash, preference should be given to short positions. A trader can enter the market at or around the current prices or when the resistance level is retested.
📌 Entry: 549.74
✔️ First target: 542.47
✔️ Second target: 536.36
❌ Stop order: 554.20
Bit.Cash M15: There is also a downward divergence at the Stochastic after the RSI
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