Bitcoin (BTCUSD) extended its intraday gains in recent trading, attempting to recover part of the heavy losses it suffered at the end of last week the largest single-day decline in the currencys history. This rise was supported by positive signals from relative strength indicators, which provided the price with some upward momentum.
However, we notice the indicators reaching exaggerated oversold levels compared to the price move, to indicate the beginning of forming negative divergence that suggests a potential weakness in the current bullish momentum, especially with the continuation of the trading below EMA50, which forms an obstacle against the full recovery on a near-term basis.
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