— Rolando Santos (@TKPTrader) November 17, 2021
Today’s Chart of the Day was shared by Rolando Santos (@TKPTrader). It’s a daily candlestick chart of Bitcoin over the past year. The candlesticks are color-coded to represent momentum as measured by RSI. Bitcoin broke out to all-time highs a few weeks ago, however, that breakout is beginning to look like a failed move. Bitcoin thrives and dives based on momentum. Momentum has been diverging negatively on each new high, and RSI is now solidly below 50. Most rallies occur when RSI is above 60 (white candles), rather than below 50 like it is now (red candles). The good news is that Bitcoin is still in a primary uptrend. However, price is currently trapped below the April highs (around $64k) and momentum is deteriorating. Some caution is warranted until those two conditions improve.