Bearish Divergence 

Bearish divergence is a concept in technical analysis that indicates a potential reversal from an ongoing bullish trend. It occurs when there is a discrepancy between the price movement of an asset and a specific technical indicator, suggesting that the bullish momentum might be weakening and a bearish reversal could be imminent. In a bearish divergence scenario, two main components are observed: Price Movement: The price of the asset forms a series of higher highs (i.e., the price reaches higher levels) on the price chart and the Technical Indicator: At the same time, a momentum or oscillating technical indicator (such as the Relative Strength Index, or RSI; or Moving Average Convergence Divergence, or MACD) forms a series of lower highs on its corresponding chart. This indicates that the momentum or trend-following indicator is not confirming the higher highs in the price. The bearish divergence suggests that even though the price is making higher highs, the momentum behind the uptrend is decreasing. This can imply that the buying pressure is waning and that a potential reversal to the downside might be on the horizon.

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