Bullish BTCUSD Trading Divergence Setup
When it comes to bullish divergence there are 2 bullish divergence trading setups mainly traded in the btcusd trading market - these bitcoin trading setups are; Crypto Classic Bullish Divergence and Bitcoin Trading Hidden Bullish Divergence.
Bitcoin Classic Bullish Divergence
Classic bullish divergence set-up forms when bitcoin price is forming lower lows ( LL ), but the oscillator is making higher lows (HL). The example illustrated below shows a picture of this bitcoin trading setup.
Bitcoin Trading Classic Bullish Divergence - Bullish Divergence Bitcoin Trading
This examples uses MACD indicator as a Bitcoin divergence indicator.
From the above bullish divergence example the bitcoin price made a lower low(LL) but the indicator made a higher low(HL), this shows there is a divergence between the bitcoin trading price & indicator. This signal warns of a possible bitcoin trend reversal.
Classic bullish diverging signal warns of a possible change in bitcoin trend from down to up. This is because even though the bitcoin price went lower the volume of sellers who pushed the bitcoin trading price lower was less as illustrated by the MACD indicator. This indicates underlying weakness of the downwards Bitcoin trend.
BTCUSD Trading Hidden Bullish Divergence
This bullish divergence setup happens when bitcoin price is forming a higher low ( HL ), but the oscillator (indicator) is showing a lower low (LL). To remember them easily think of them as W-shapes on Chart patterns. It occurs when there is a retracement in an upwards Bitcoin trend.
The bullish divergence example illustrated below shows an image of this bitcoin trading setup, from the image the bitcoin trading price made a higher low (HL) but the technical indicator made a lower low (LL), this shows that there was a diverging signal between the bitcoin price & indicator. This signal shows that soon the btcusd trading market up bitcoin trend is going to resume. In other words it shows this was just a retracement in an upward bitcoin trend.
Crypto Trading Hidden Bullish Divergence- Bullish Divergence Bitcoin Trading
This bullish divergence confirms that a retracement move is complete and indicates underlying strength of an upward cryptocurrency trend.
