BTCUSD extremely bullish despite divergences
Updated
Bitcoin just shrugged off a major dump and jumped 40% in a week. 8k USD & 7k EUR showed exactly zero resistance.
Meanwhile, there are obvious divergences in RSI, MFI, & volume. However, these divergences simply mean minor adjustments may or may not come in the next weeks.
As mentioned in an earlier post, the price of BTCUSD only makes sense if you look the log of log. If we take the natural log, at 5k USD it is 2.142 while at 8k it is 2.196 -> only a 2.5% growth! Now, an asset that grow 2.5% a week is bullish, but not alarming at all.
It is very difficult to see the price of BTCUSD fall below 8k at the moment. By December, it is also very difficult to see it below 10k.
Meanwhile, there are obvious divergences in RSI, MFI, & volume. However, these divergences simply mean minor adjustments may or may not come in the next weeks.
As mentioned in an earlier post, the price of BTCUSD only makes sense if you look the log of log. If we take the natural log, at 5k USD it is 2.142 while at 8k it is 2.196 -> only a 2.5% growth! Now, an asset that grow 2.5% a week is bullish, but not alarming at all.
It is very difficult to see the price of BTCUSD fall below 8k at the moment. By December, it is also very difficult to see it below 10k.
Note
One error: I meant to say it's very difficult to see it fall below 7.6k (blue line), which is the previous high, at the moment.
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