ETN Daily chart (bullish divergence) 10.01.26.

This has been forming for a while but I hadn't noticed. Price has lower lows. Rsi has higher lows. Volume rising into the lows. That is classic bullish divergence! 

What this tells us: Selling pressure is weakening. Each push down is being absorbed more efficiently. Bears are spending more time for less result.

This is especially meaningful when: It appears after a long downtrend. It forms near a structural support zone. Volume increases on the later lows. We have all 3 here! 

Bullish divergence without rising volume is a bit meh. Bullish divergence with rising volume is accumulation behaviour. This combo usually means smart money is buying while the price still looks bad. Retail sees lower lows and hesitates. Larger players see improving momentum and step in. 

Further to this if you look at a Btc/Usd weekly chart you will see bearish divergence from March to October. (The opposite happening. Price higher highs. Rsi lower highs). New ath and possible end of cycle. Momentum is weakening. 

Etn showing bullish convergence at the same time means a possible decoupling from Btc as discussed in a previous post. 

Why this setup is actually strong. Bullish divergence+rising volume+Btc bearish divergence is a known rotation signal. Capital rotates out of btc, into selective alts showing relative strength, especially low cap narratives. This is how early alt runs begin....quietly. Watch the Etn/Btc chart closely for a higher low (where it is presently as we saw in Electromans chart the other day). I will obviously keep you informed!

I'm excited! 😎