MACD Bitcoin Classic Bullish and Bearish Divergence

MACD Bitcoin Classic divergence is used as a possible sign for a bitcoin trend reversal. MACD classic divergence is used when looking for an area where btcusd price could reverse and start going in the opposite bitcoin trend direction. For this reason MACD classic divergence is used as a low risk entry method and also as an accurate way of exit out of a bitcoin trade.

1. It is a low risk method to sell near the btcusd trading market top or buy near the btcusd trading market bottom, this makes the risk on your cryptocurrency trades are very small relative to the potential reward.

2. It is used to predict the optimum point at which to exit a Bitcoin trade.

There are two different types of Bitcoin Classic Divergence:

1. Bitcoin Trading Classic Bullish Divergence
2. Bitcoin Trading Classic Bearish Divergence

Bitcoin Trading Classic Bullish Divergence in Bitcoin Trading

Classic bullish divergence in bitcoin trading occurs when btcusd price is making lower lows (LL), but the oscillator is making higher lows (HL).

MACD Bitcoin Trading Classic Bullish Divergence in Bitcoin Trading - MACD Divergence Bitcoin Trading Strategy

Classic bullish divergence in bitcoin trading warns of a possible change in the bitcoin trend from down to up. This is because even though the btcusd price went lower the volume of sellers that pushed the btcusd price lower was less as illustrated by the MACD cryptocurrency indicator. This indicates underlying weakness of the downward cryptocurrency market trend.

Classic bearish divergence in Bitcoin Trading

Classic bearish divergence in bitcoin trading occurs when btcusd price is making a higher high (HH), but the oscillator is lower high (LH).

MACD Bitcoin Trading Classic Bearish Divergence in Bitcoin Trading - MACD Divergence Bitcoin Trading Strategy

Classic bearish divergence warns of a possible change in the btcusd trading market bitcoin trend from up to down. This is because even though the btcusd price went higher the volume of buyers that pushed the btcusd price higher was less as illustrated by the MACD cryptocurrency indicator. This indicates underlying weakness of the upward cryptocurrency market trend.