Why is hidden bullish divergence on the RSI considered a bullish signal for cryptocurrency investors?

3 answers

• Tanish YadavFeb 21, 2022 · 3 years ago
  Hidden bullish divergence on the RSI is considered a bullish signal for cryptocurrency investors because it suggests a potential reversal in the price trend. When the price of a cryptocurrency is making lower lows, but the RSI indicator is making higher lows, it indicates that the selling pressure is weakening and the buyers may soon take control. This divergence in price and RSI can be seen as a sign that the downtrend is losing momentum and a bullish reversal may be imminent.
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• cmmattinglyOct 10, 2023 · 2 years ago
  Hidden bullish divergence on the RSI is a technical analysis tool used by cryptocurrency investors to identify potential buying opportunities. It indicates that even though the price is declining, the momentum is shifting in favor of the bulls. This can be a signal for traders to enter long positions or hold onto their existing positions, expecting a price increase in the near future. However, it's important to note that divergence alone is not a guarantee of price movement, and other factors should be considered before making investment decisions.
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• Mohammad SHAHADUL ISLAM SHAKIBSep 13, 2023 · 2 years ago
  As an expert at BYDFi, I can tell you that hidden bullish divergence on the RSI is highly regarded by cryptocurrency investors. It's seen as a reliable indicator of a potential bullish trend reversal. When the RSI shows higher lows while the price is making lower lows, it suggests that the selling pressure is weakening and the buyers are gaining strength. This can lead to a price increase in the market. Traders often use this signal to identify buying opportunities and adjust their trading strategies accordingly.
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