What is bearish divergence - let's figure it out.
Divergence is the discrepancy (non-coincidence) between the price chart and the RSI chart. There can be bullish and bearish divergence.
We look for bullish divergence by analyzing the lows, and bearish divergence by analyzing the highs.
Example: today's daily ETH chart. I drew two green lines between the peaks. On the chart, both maxima are at the same level.
And on the chart, the last RSI peak is noticeably lower. This is bearish divergence. It means that the buying strength is weakening, and a price pullback is possible.
Considering that the price has once again unsuccessfully tested the resistance, it is likely to be so. But the day has not closed yet (we will analyze it more accurately tomorrow)😉
Look at the chart, what do you think? Will the price go down? 👇