BTC - Pin Bar Formation but RSI Bearish Divergence
Was quite the drop today, swapped some Gold for Bitcoin-adjacent equity QBTC - more than doubled my position, also HIVE - doubled position - did not get the best prices, but close enough. When I sold the gold prior (Mutual Fund), the timing could not be better to get a half decent price and to buy those equities on a dip prior to the weekend, where all bets on BTC are off in my mind. The move up on this pin bar tells me that better to be safe than sorry in case Bitcoin suddenly breaks trend and moves up. Still not all the way there in terms of where I want to be on those equities, but closer.
RSI seems to be tracking some bearish divergence to my eyes, with price settling higher than, but RSI printing lower on the RSI trend line I've drawn. The divergence is not very large, but not insignificant at this point and I would not be surprised if we were to see lower prices by Sunday despite that 4-hour Pin Bar. Could be a short idea in there somewhere, but trading it would be a matter of timing and cutting losses very quickly if price does not manifest lower than the entry. Something to look at tomorrow perhaps.
All in all, I would say my bias is neutral and that playing the range that we have is most likely what traders are doing right now - might join them with a tiny stack that I reserve for trading purposes. If I were to place a bet, I would be selling as high as it can go in the next day or two and look to exit on a re-test (and possible failure) of 32 K (exact number would be found along the bottom of the trend line). Too much of a headache at this point to play it, and perhaps that is for the best.
RSI seems to be tracking some bearish divergence to my eyes, with price settling higher than, but RSI printing lower on the RSI trend line I've drawn. The divergence is not very large, but not insignificant at this point and I would not be surprised if we were to see lower prices by Sunday despite that 4-hour Pin Bar. Could be a short idea in there somewhere, but trading it would be a matter of timing and cutting losses very quickly if price does not manifest lower than the entry. Something to look at tomorrow perhaps.
All in all, I would say my bias is neutral and that playing the range that we have is most likely what traders are doing right now - might join them with a tiny stack that I reserve for trading purposes. If I were to place a bet, I would be selling as high as it can go in the next day or two and look to exit on a re-test (and possible failure) of 32 K (exact number would be found along the bottom of the trend line). Too much of a headache at this point to play it, and perhaps that is for the best.
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