# How Does a "Hidden Bullish Divergence" Differ from a Standard Bearish Divergence? ⎊ Path

**Published:** 2025-12-04
**Author:** Greeks.live
**Categories:** Path

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## How Does a “Hidden Bullish Divergence” Differ from a Standard Bearish Divergence?

A standard bearish divergence (used to predict a drop) is when price makes a higher high, but the indicator (like RSI) makes a lower high. A hidden bullish divergence (used to predict a trend continuation) is when the price makes a higher low, but the indicator makes a lower low.

This suggests that momentum is secretly strengthening within the existing uptrend.

- [Explain the Relative Strength Index (RSI) and Its Use in Identifying Overbought Conditions](https://learn.greeks.live/path/explain-the-relative-strength-index-rsi-and-its-use-in-identifying-overbought-conditions/)

- [What Is a ‘Hidden Limit Order’ and Is It Compatible with Stop-Limit Functionality?](https://learn.greeks.live/path/what-is-a-hidden-limit-order-and-is-it-compatible-with-stop-limit-functionality/)

- [What Are the Limitations of Using Implied Volatility as a Predictive Tool?](https://learn.greeks.live/path/what-are-the-limitations-of-using-implied-volatility-as-a-predictive-tool/)

- [What Is the Role of the 50-Period Exponential Moving Average (EMA) in Identifying Short-Term Resistance?](https://learn.greeks.live/path/what-is-the-role-of-the-50-period-exponential-moving-average-ema-in-identifying-short-term-resistance/)

- [What Is the Effect of Changing the Lookback Period on the RSI Calculation?](https://learn.greeks.live/path/what-is-the-effect-of-changing-the-lookback-period-on-the-rsi-calculation/)

- [What Role Does the MACD Indicator Play in Confirming a Continuation of a Downtrend?](https://learn.greeks.live/path/what-role-does-the-macd-indicator-play-in-confirming-a-continuation-of-a-downtrend/)

- [What Is a “Break of Structure” (BOS) and How Is It Used in Trading?](https://learn.greeks.live/path/what-is-a-break-of-structure-bos-and-how-is-it-used-in-trading/)

- [How Can RSI Be Combined with Volume Analysis to Confirm a Dead Cat Bounce?](https://learn.greeks.live/path/how-can-rsi-be-combined-with-volume-analysis-to-confirm-a-dead-cat-bounce/)

## Glossar

### [Hidden Bullish Divergence](https://learn.greeks.live/area/hidden-bullish-divergence/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Divergence ⎊ The hidden bullish divergence, observed primarily within cryptocurrency derivatives markets and options trading, represents a discrepancy between price action and momentum indicators, signaling potential trend reversals.

### [Divergence](https://learn.greeks.live/area/divergence/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Analysis ⎊ In quantitative analysis, divergence represents a critical discrepancy between the direction of an asset's price action and the associated technical indicator, such as the Relative Strength Index or MACD.

### [Standard Bearish Divergence](https://learn.greeks.live/area/standard-bearish-divergence/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Divergence ⎊ Standard Bearish Divergence is a classic technical signal occurring when the price of an asset, such as a cryptocurrency or its derivative, records a higher high, while a momentum oscillator, like the Relative Strength Index (RSI), simultaneously registers a lower high.

## Discover More

### [How Does a Warrant Differ from a Call Option?](https://learn.greeks.live/path/how-does-a-warrant-differ-from-a-call-option/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does a Warrant Differ from a Call Option?](https://learn.greeks.live/wp-content/uploads/2025/10/Abstract-Visualization-of-Decentralized-Finance-Option-Structure-Unfolding-Towards-Liquidity-Pool-Access.webp)

Warrants are issued by the company and dilute shares upon exercise; call options are third-party contracts and do not dilute.

### [How Does Capital Efficiency Differ between a Standard AMM and a Concentrated Liquidity Pool?](https://learn.greeks.live/path/how-does-capital-efficiency-differ-between-a-standard-amm-and-a-concentrated-liquidity-pool/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does Capital Efficiency Differ between a Standard AMM and a Concentrated Liquidity Pool?](https://learn.greeks.live/wp-content/uploads/2025/10/Exposing-Latent-Digital-Asset-Bifurcation-Mechanisms-Through-Illuminated-DeFi-Protocol-Stacks.webp)

CLPs are more capital efficient because capital is concentrated in the active trading range, facilitating higher volume and fees.

### [What Is the Difference between Impermanent Loss and a Standard Market Loss on a Held Asset?](https://learn.greeks.live/path/what-is-the-difference-between-impermanent-loss-and-a-standard-market-loss-on-a-held-asset/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Difference between Impermanent Loss and a Standard Market Loss on a Held Asset?](https://learn.greeks.live/wp-content/uploads/2025/10/Decentralized-Ledger-Tokenization-Construct-Bifurcation-High-Frequency-Arbitrage-Mechanism-Visualization.webp)

Market loss is direct value reduction; IL is an opportunity cost relative to a simple hold strategy due to ratio divergence.

### [How Does a Read-Only Reentrancy Attack Differ from These Two Types?](https://learn.greeks.live/path/how-does-a-read-only-reentrancy-attack-differ-from-these-two-types/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does a Read-Only Reentrancy Attack Differ from These Two Types?](https://learn.greeks.live/wp-content/uploads/2025/10/Fluorescent-Margin-Call-Indicator-Interfacing-with-Layered-Digital-Asset-Ledger-Tapes.webp)

It tricks a contract into making decisions based on stale data by re-entering it before a state-dependent operation completes.

### [How Does 'Probabilistic Finality' Differ from 'Economic Finality'?](https://learn.greeks.live/path/how-does-probabilistic-finality-differ-from-economic-finality/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does 'Probabilistic Finality' Differ from 'Economic Finality'?](https://learn.greeks.live/wp-content/uploads/2025/10/Macro-Analysis-of-High-Frequency-Trading-Hardware-Interfacing-with-Blockchain-Protocol-Settlement-Mechanisms.webp)

Probabilistic: statistically unlikely reversal after X blocks (PoW). Economic: technically possible but economically irrational due to high cost (PoS slashing).

### [What Is the "Sufficiently Decentralized" Standard in Token Classification?](https://learn.greeks.live/path/what-is-the-sufficiently-decentralized-standard-in-token-classification/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the "Sufficiently Decentralized" Standard in Token Classification?](https://learn.greeks.live/wp-content/uploads/2025/10/Asymmetric-Digital-Asset-Volatility-Surface-Intersection-Conceptualizing-Perpetual-Futures-Execution.webp)

A network state where reliance on a central promoter's efforts is eliminated, potentially changing security status.

### [Which Proxy Standard Is Generally Preferred for New DeFi Protocols and Why?](https://learn.greeks.live/path/which-proxy-standard-is-generally-preferred-for-new-defi-protocols-and-why/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Which Proxy Standard Is Generally Preferred for New DeFi Protocols and Why?](https://learn.greeks.live/wp-content/uploads/2025/10/Precision-Optics-on-a-Reflective-Surface-Modeling-Algorithmic-Hedging-Strategies-in-Digital-Asset-Markets.webp)

UUPS is preferred for its greater gas efficiency and flexibility, allowing the upgrade logic itself to be updated via the implementation contract.

### [How Does an M-of-N Scheme Differ from a Standard Single-Key Wallet?](https://learn.greeks.live/path/how-does-an-m-of-n-scheme-differ-from-a-standard-single-key-wallet/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does an M-of-N Scheme Differ from a Standard Single-Key Wallet?](https://learn.greeks.live/wp-content/uploads/2025/10/Futuristic-Digital-Asset-Leveraged-Hedging-Mechanism-On-Polished-Automotive-Casing-Surface.webp)

M-of-N requires multiple keys for consensus, eliminating the single point of failure of a standard single-key wallet.

### [Could a Derivative Be Created That Specifically Pays out If a Cryptographic Standard like SHA-256 Is Broken?](https://learn.greeks.live/path/could-a-derivative-be-created-that-specifically-pays-out-if-a-cryptographic-standard-like-sha-256-is-broken/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Could a Derivative Be Created That Specifically Pays out If a Cryptographic Standard like SHA-256 Is Broken?](https://learn.greeks.live/wp-content/uploads/2025/10/Metallic-Device-Interface-Probing-Binary-State-Differential-Via-Actuation-Mechanism-in-High-Frequency-Trading.webp)

Yes, a binary option or swap could be designed to pay out upon proof of a SHA-256 break, acting as a hedge for crypto firms.

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**Original URL:** https://learn.greeks.live/learn/how-does-a-hidden-bullish-divergence-differ-from-a-standard-bearish-divergence/
