$BTC looking at potential recovery
Updated
Price action drove us below the diagonal support we have been following lately. Considering the number of traders who were likely using this area for entry and stop loss placement, this provided momentum and liquidity for any stop hunt. I generally draw my order blocks based off candle bodies—while that would still apply here, I have redrawn the bullish order block based off the wicks before the major short squeeze. \u2028
Looking at our indicators: we have bullish regular divergence forming on the CMF and OBV, however, these are not yet confirmed. I did not label this on the chart, but the RSI is also showing weak bullish regular divergence. This is considered weak as the oscillator creates a flat bottom as opposed to a higher low. \u2028
Quick reminder: Regular Bullish Divergence occurs when price creates a lower low and an oscillator creates a higher low. This is most often a sign of trend reversal from bearish to bullish. \u2028
Looking at lower time frames, we have some mixed signals. For the short term, I am expecting to see some consolidation in this area before any further movement. I am currently leaning toward a bullish bias, and am looking for confirmation in the coming hours. Keep in mind that almost all of this price action is contained inside the weekly bullish OB which has been in play this bear market (this is shown in other BTC ideas of mine). Don’t let weak hands take over by putting your entire focus on low time frame price action. \u2028
Looking at our indicators: we have bullish regular divergence forming on the CMF and OBV, however, these are not yet confirmed. I did not label this on the chart, but the RSI is also showing weak bullish regular divergence. This is considered weak as the oscillator creates a flat bottom as opposed to a higher low. \u2028
Quick reminder: Regular Bullish Divergence occurs when price creates a lower low and an oscillator creates a higher low. This is most often a sign of trend reversal from bearish to bullish. \u2028
Looking at lower time frames, we have some mixed signals. For the short term, I am expecting to see some consolidation in this area before any further movement. I am currently leaning toward a bullish bias, and am looking for confirmation in the coming hours. Keep in mind that almost all of this price action is contained inside the weekly bullish OB which has been in play this bear market (this is shown in other BTC ideas of mine). Don’t let weak hands take over by putting your entire focus on low time frame price action. \u2028
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4 HR RSI showing potential for bullish failure swing
Note
Bullish failure swing was quickly invalidated today. 4 hour time frame showing multiple bullish divs I am looking for confirmation on.
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