we weren't quite in the overbought zone yet (normal RSI) and suddenly this dump happens... Daily and hourly timeframes suggest unnatural behavior. The dump obviously caused a dip in the stoch RSI which no other local minimum (hourly candles) is going to be able to surpass unless a cascade of dumps follow immediately or we go near zero trading volume during the day. So some bullish divergence could show up in the charts soon.
Obviously, if a cascade of dumps happen, both RSI and stoch RSI would tank, indicating us to GTFO and not touch BTC with a ten foot laser beam until both indicators go into the oversold zone.
If I'm right and the dump is not quite organic, both a inverted head and shoulders and a major bull flag offer long targets around 8200€. Notice that the white line that's drawn along the necklace of the head and shoulders has shown previously as a support/resistance in the left zone of the chart, so it wouldn't be unreasonable to think we'd bounce off of it and stay in the green wedge; which we left yesterday. I didn't move it from the previous chart yet, so I guess today I'll get confirmation wether it holds up or not.
Not suggesting to go long blindfully, but 15% gains could be on the menu for intrepid traders. Watch indicators carefully in daily-4h-1h charts so you don't miss any perspective and get caught in bad trades.
Good luck everyone!
Obviously, if a cascade of dumps happen, both RSI and stoch RSI would tank, indicating us to GTFO and not touch BTC with a ten foot laser beam until both indicators go into the oversold zone.
If I'm right and the dump is not quite organic, both a inverted head and shoulders and a major bull flag offer long targets around 8200€. Notice that the white line that's drawn along the necklace of the head and shoulders has shown previously as a support/resistance in the left zone of the chart, so it wouldn't be unreasonable to think we'd bounce off of it and stay in the green wedge; which we left yesterday. I didn't move it from the previous chart yet, so I guess today I'll get confirmation wether it holds up or not.
Not suggesting to go long blindfully, but 15% gains could be on the menu for intrepid traders. Watch indicators carefully in daily-4h-1h charts so you don't miss any perspective and get caught in bad trades.
Good luck everyone!
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.