Momentum Divergence on BTC 4H
Momentum Divergence
LongA bullish momentum divergence on the 4-hour chart. Here is where it sits and how this pattern has behaved in the past.
Entry sits near $78,434, with invalidation at $77,295. This style holds the full position toward the room near $82,283. A close below $77,295 ends the idea.
Entry sits near $78,434, with invalidation at $77,295. This style books half near the first target around $79,574 and shifts the stop to the entry ($78,434), so the remainder carries no risk. The rest targets the room near $82,283.
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Not financial advice, and never a buy or sell call. Past performance does not predict future results. See how these numbers are computed.
What formed
A Momentum Divergence formed on BTC 4H. Historically this pattern on BTC 4H resolved toward the first target in 6320% of 117 instances before touching invalidation, with an expectancy of +0.25R per instance. This is descriptive analysis of a chart structure, not personalized guidance.
Momentum divergence is a two-part pattern where price prints a new high or low but a momentum oscillator like RSI fails to confirm with a corresponding new extreme. The mismatch signals that the visible price move is not being supported by underlying momentum.
It forms when two consecutive prominent price pivots disagree with two corresponding pivots on the momentum oscillator. Bullish: lower price low, higher momentum low. Bearish: higher price high, lower momentum high.