Hidden Bullish and Bearish Divergence: A Guide to Crypto Trading 🚀

robot
Abstract generation in progress

Divergence is a powerful signal of a possible trend change in the crypto market. September 2025. The market is buzzing. Understanding different types of divergences seems almost like a magical advantage for a trader 📈.

What is divergence? 🔍

Divergence occurs when the price of a crypto asset and a technical indicator move in opposite directions. The trend is weakening. Everything will change soon.

Two main types:

  • Bullish divergence — hints at growth 🌕
  • Bearish Divergence — predicts a drop 📉

Classic vs Hidden

Classic Divergence

It occurs at the end of a long trend. Predicts a reversal.

Example: February 2021. Bitcoin is storming to new heights. But the RSI is showing increasingly lower highs for some reason. Bearish divergence in full bloom. Then a 25% correction happened. Coincidence, right?

Hidden Divergence 🔥

Appears after consolidation. Says that the main trend will continue.

Example: The same February 2021. Bitcoin's upward trend. The price is making a higher low. RSI - lower. Strange. But BTC soon soared even higher.

How to Find Hidden Divergence 🕵️

  1. Select an indicator — RSI, MACD, Stochastic
  2. Find the main trend
  3. Look for discrepancies between the price and the indicator

MACD in action

March 2021. BTC hourly chart. The MACD line showed lower lows on March 28. Price - higher lows. Seems illogical? Bitcoin still rose by 9% over the next two days 🚀.

The stochastic does not lie

June 2021. Ethereum chart. Hidden bearish divergence. Stochastic is trending upwards. The price of ETH is falling for some reason. Soon Ethereum crashed by 20%. In two days.

Tips for Traders 💡

  • Works on any timeframes
  • Use thick lines for indicators
  • Bullish hidden: indicator below, price above
  • Bearish hidden: indicator up, price down

September 2025. Crypto assets are literally screaming divergence. Observant traders are ecstatic. Divergence is not just a signal to enter. It’s like an X-ray showing the strength of the trend from the inside 🌟.

BTC0.26%
ETH1.85%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)