BTC 4-hour K-line technical analysis: Bullish momentum is strong, beware of volume-price divergence

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【CryptoWorld】BTC has shown a clear polarization in the past 4 hours. From 12:00 to 20:00, the price experienced a significant rally, but the last candlestick showed a correction, forming a small bullish candle. It appears that the bulls are still in control, with the closing price remaining above the opening price, but the momentum has weakened.

The trading volume performance is worth noting—over the past few hours, the volume has noticeably shrunk, far below previous levels. This creates an interesting phenomenon: as the price declines, the trading volume also decreases, indicating that the market has entered a state of lull with insufficient participation.

The MACD indicator shows that the bulls are still exerting effort. The histogram remains positive and is gradually lengthening, indicating strong bullish momentum. However, the KDJ indicator shows a neutral stance, with a KDJ value of only 41, signaling a clear downward trend. This reveals that—although the bulls are still dominant—there is a warning of divergence between price and volume.

From a technical perspective, the current support level is at 85,028.0, and resistance is at 89,611.0. If considering a long position, two entry points are at 85,875.92 and 85,028.0, with a stop-loss set at 85,446.54. For a short position, the target sell levels are at 90,330.36 or 89,611.0, with a stop-loss at 90,782.01. The recent high touched 90,330.36, and the low was at 85,875.92.

Overall, the market remains bullish, but the lack of trading activity combined with volume-price divergence suggests that there could be significant changes ahead.

BTC-0.23%
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LiquidationKingvip
· 3h ago
The decline in volume and the weakness of long positions suggest that this rise may be a false rally, don't be fooled.
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LiquidityWitchvip
· 13h ago
The divergence between price and volume is the most annoying thing. No matter how strong the bulls are, it's useless without volume; it's just false fire.
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just_vibin_onchainvip
· 12-18 08:09
The classic pattern of price-volume divergence is back; it's just false prosperity.
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SchrodingersFOMOvip
· 12-18 08:03
The divergence between price and volume is just a trap. The bulls seem to be thriving on the surface, but they have been weak underneath. That KDJ value of 41 really can't hold up.
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AirdropLickervip
· 12-18 07:55
The most annoying thing is divergence between price and volume. The bulls look strong, but the trading volume is so dull, it always feels like something's going to happen.
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RunWithRugsvip
· 12-18 07:54
Divergence between price and volume really can't hold up. The bulls look strong but there are actually very few people following along. --- With such weak trading volume, how can we break through? Feels like a fake-out. --- KDJ is only 41? Holding a bullish MACD, you really need to be cautious. --- Is this correction to gather strength or to fall? Let's see if 85 can hold. --- So quiet... Is that all? Looks like next we need to watch the trading volume. --- I'm a bit skeptical about the claim that the bulls are strong. Who would believe such a volume decline? --- Beware of +1 divergence between volume and price. I really dislike this kind of fake-out market. --- KDJ and MACD are conflicting, making it hard to judge the future trend. --- Wait, the trading volume isn't matching the price increase. Buying in must be really uncomfortable.
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SoliditySurvivorvip
· 12-18 07:46
The divergence between price and volume is indeed something to watch out for. It feels like this bullish wave is a bit weak.
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SandwichTradervip
· 12-18 07:42
I hate the thing about price and volume divergence the most; in the end, it's still retail investors getting burned.
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