Bitfinex - Beat them with the Rod of Correction
Updated
1-day chart's MACD remains below its signal line and is about to cross below zero.
There is no reason why the negative market sentiment (notably amongst their own customers) should not result in selling to the same support that all other exchange charts had found.
It is possible that bitcoin price tests $500 psych support across exchanges.
Two caveats:
1) A sideways consolidation may precede the final sell-off.
2) Look for confirmation of the 1-day MACD sell condition (chart above) by new MACD (and other) sell signals forming in the 4hr and 1hr charts. That will be both the confirmation of the decline, as well as an appropriate moment to open a short position.
Bitfinex customers should consider shorting to $500, and to then convert all funds to BTC and get out of the bumbling Bitfinex exchange. The tragi-comedy of errors lies solidly at the feet of Bitfinex directors. Why continue supporting a bunch of incompetent nice guys? Lot's wife turned into a pillar of salt.
There is no reason why the negative market sentiment (notably amongst their own customers) should not result in selling to the same support that all other exchange charts had found.
It is possible that bitcoin price tests $500 psych support across exchanges.
Two caveats:
1) A sideways consolidation may precede the final sell-off.
2) Look for confirmation of the 1-day MACD sell condition (chart above) by new MACD (and other) sell signals forming in the 4hr and 1hr charts. That will be both the confirmation of the decline, as well as an appropriate moment to open a short position.
Bitfinex customers should consider shorting to $500, and to then convert all funds to BTC and get out of the bumbling Bitfinex exchange. The tragi-comedy of errors lies solidly at the feet of Bitfinex directors. Why continue supporting a bunch of incompetent nice guys? Lot's wife turned into a pillar of salt.
Comment
Bitfinex pulling lower but there is a chance this is only part of a larger correction.If the ABC (black count annotation) unfolds then we'll see both $580 (wave B) and $610 (wave C) before the plunge to $500 support.
The red count annotations imply that the correction is over in which case we would expect to see price pull below $580 today 12 Aug. If both a 4hr and 1hr sell signal coincide then the short trade will open.
Comment
Bitfinex 1hr chart related to the previous commentTrade active
Reluctant decline but the 4hr and 1hr chart MACDs are bearish and the trade opens on decline below $580. The primary target remains $500, although a correction at $550 is likely given the presence of the 2.618 Fib.
Trade closed manually
The initial trade below $580 closed on Tue 16 Aug when 4hr MACD crossed above its signal line with price at $570. There is no reason to remain in a trade if price action becomes indecisive so close to entry.Can decline resume? Possibly, but the market's reluctance to trade lower than $555 implies that price must either consolidate above this level and then drop through - a wait of a week or so. Or, the market may have lost interest in selling and the upside beckons!
If so, then the structure visible in all the charts (except Bitfinex) represents a formidable base wave and could see the market turn its attention back on $680.
If additional decline becomes evident it will be analysed and tracked here.
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