Divergence

Definition ∞ ‘Divergence’ describes a situation where an asset’s price movement deviates from the direction indicated by a technical indicator. This discrepancy can signal a potential shift in market momentum. It is a concept frequently utilized in technical analysis.
Context ∞ The observation of ‘Divergence’ is a common topic among technical analysts interpreting market sentiment and price action. Current market analysis frequently points to bearish divergences on major cryptocurrencies, suggesting a possible downturn in their respective price trajectories.