Why is bullish divergence considered a positive sign for cryptocurrency prices?

1 answers

• Nelson LongMar 23, 2025 · 4 months ago
  Bullish divergence is considered a positive sign for cryptocurrency prices because it indicates a potential change in market direction. It occurs when the price of a cryptocurrency continues to decline, but the corresponding technical indicator shows signs of strength or a potential reversal. Traders pay attention to bullish divergence because it suggests that the selling pressure may be exhausted, and buyers could step in to drive the price higher. However, it's important to note that bullish divergence should not be the sole basis for making trading decisions. Traders should consider other technical indicators, market trends, and fundamental factors to get a comprehensive view of the market before taking any action. At BYDFi, we believe in a holistic approach to trading and encourage our users to consider multiple factors when analyzing the market.
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