RSI Bitcoin Indicator Divergence Bitcoin Trade Setups

Bitcoin Divergence is one of the trade transaction setups used by Bitcoin traders. It involves looking at a chart ==22==& one more indicator. For our example we shall use the RSI indicator.

To spot this divergence trade setup find 2 chart points at which bitcoin price forms a new swing high or new swing low but the RSI cryptocurrency indicator doesn't, indicating a divergence setup between bitcoin price & momentum.

RSI Bitcoin Divergence Example:

In the chart below we spot 2 chart points, point A & point B (swing highs)

Then using RSI we check and analyze the highs made and formed by the bitcoin RSI technical indicator, these are highs that are directly below the bitcoin Chart points A and B.

We then draw one line on the trading chart and another line on the RSI.

RSI Divergence Bitcoin Setup - Bitcoin Trade Divergence using RSI Crypto Indicator

How to spot bitcoin divergence

In order to identify this divergence trade setup we look for the following:

HH = Higher High : two highs but last is higher

LH = Lower High : 2 highs but last is lower

HL = Higher Low : two lows but last is higher

LL = Lower Low - 2 lows but last is lower

First let us look at the illustrations of these bitcoin terms

Divergence Bitcoin Trading Terms Definition

Bitcoin Divergence Terms Definition Examples

There are 2 different types of divergence setups:

1. Classic BTCUSD Trading Divergence
2. Hidden Bitcoin Trading Divergence

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