Bitcoin Bears Coming Out Of The Woods...
Updated
Good morning traders!
We've added a new tool for you in the Bitcoin playbook.
This is called a pitchfork, which has been one of the most accurate indicators on Bitcoin since early August.
If you're wondering where all those random bounces are coming from, then this chart will give you all the info.
Using a combination of the pitchfork and the fib levels from my previous analysis, we can see exactly why Bitcoin is doing what it is doing.
The Median line of the pitch fork (dark black line) has been acting as an incredibly strong support for Bitcoin as it moves in a bullish channel.
We can also see that the .618 (red zone) has been acting as strong resistance throughout this bitcoin rally and is now acting as support.
Bitfinex is driving a majority of the price action, while other exchanges are not following suit.
Price was rejected at the .382 level while there is a divergence on the 4 hour RSI (which we saw two days ago when price dropped to the median line.)
We saw shorts move up 50% yesterday on Bitfinex as price was rejected from the .382 fib level.
Shorts are not high enough yet to cause a short squeeze in my opinion.
We are still in the rising wedge formation.
Everytime price has gotten to the top of the pitch fork, it's been a great shorting opportunity. So with the rising wedge, the increasing shorts and the bearish divergence, we will most likely see a retest of the median line around ($6970.)
SHORT TARGET: $6900.
Tomorrow is labor day, so the futures market should still be closed, but when it opens we may get the gap pull back we were looking for.
We don't typically like to trade weekends as volume is low and volatility is much higher.
Hopefully this chart helps you in your trading. Make sure you like and comment with any questions.
We've added a new tool for you in the Bitcoin playbook.
This is called a pitchfork, which has been one of the most accurate indicators on Bitcoin since early August.
If you're wondering where all those random bounces are coming from, then this chart will give you all the info.
Using a combination of the pitchfork and the fib levels from my previous analysis, we can see exactly why Bitcoin is doing what it is doing.
The Median line of the pitch fork (dark black line) has been acting as an incredibly strong support for Bitcoin as it moves in a bullish channel.
We can also see that the .618 (red zone) has been acting as strong resistance throughout this bitcoin rally and is now acting as support.
Bitfinex is driving a majority of the price action, while other exchanges are not following suit.
Price was rejected at the .382 level while there is a divergence on the 4 hour RSI (which we saw two days ago when price dropped to the median line.)
We saw shorts move up 50% yesterday on Bitfinex as price was rejected from the .382 fib level.
Shorts are not high enough yet to cause a short squeeze in my opinion.
We are still in the rising wedge formation.
Everytime price has gotten to the top of the pitch fork, it's been a great shorting opportunity. So with the rising wedge, the increasing shorts and the bearish divergence, we will most likely see a retest of the median line around ($6970.)
SHORT TARGET: $6900.
Tomorrow is labor day, so the futures market should still be closed, but when it opens we may get the gap pull back we were looking for.
We don't typically like to trade weekends as volume is low and volatility is much higher.
Hopefully this chart helps you in your trading. Make sure you like and comment with any questions.
Note
Possible fractal playing out.Anything can happen in crypto though!
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