FTT has been falling afterward Sept 9 after touching an all-time high cost of $85.74. So far, it has decreased by 58%.
It has gotten some support near the $34 horizontal field that has intermittently acted as both resistance and support afterward February 2021. Since the cost is approaching it from over, the range is inclined to continue holding as support.
Regardless of the considerable decrease, there is a very interesting bullish development in the form of a hidden bullish divergence in the RSI. Such variances are often signs of trend continuation, and afterward the prolonged-term trend has been bullish, a continuation of this change would be inclined.
The fact that the divergence is present in the weekly time frame further increases its significance.
The daily chart shows that FTT is exchanging within a plunging wedge. The wedge is normally advised a bullish diagram, meaning that a breakout to the upside would be the most inclined scheme.
Similar to the weekly time frame, there is a considerable bullish divergence that has developed in the daily RSI (green line) and is still present in the MACD signal line. Divergences in the MACD signal line are quite rare. The instance this occurred for FTT was a bearish divergence in April 2021 (red line), preceding a fall of 65%.
Therefore, it’s inclined that the current divergence could have a alike result, except pushing the cost back up.
Wave count analysis
The most reasonable wave count indicates that FTT has hardly finished an A-B-C corrective structure (black). The sub-wave count is shown in red. Waves A and C have nearly a 1:1 ratio, supporting the opportunity that this is the correct count.
In order for this to be confirmed, FTT has to shift atop the A wave low (green line) of $48.10, that would likewise cause a breakout from the tumbling wedge.
The alternative bearish count suggests which FTT is actually adhered in a bearish five-wave descending progress (black). In this matter, the previously proposed wave C would actually be wave three, even though the sub-wave count continues the same.
In this evidence, FTT would not break over $48.17, rather it would get rejected and fall towards $20.
Cryptocurrency enthusiast @Tradecraxt_X tweeted an FTT chart, stating which the pair could possible continue ascending in the daily time frame.
FTX/BTC has afterward broken out from an spiraling suchlike channel and approved it as support on Jan 22 (green icon). Such breakouts and retests numerously precede large ascending movements.
Granted that the ongoing increase endures, the closest resistance field would be found at ₿0.013. This is the 0.5 Fib retracement resistance level and a horizontal resistance range.
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