High confluence area in BTC
Updated
By drawing a trend based Fibonacci Extension from the June 22nd bottom to the swing high on June 29th then to the higher low on July 20th, BTC is potentially about to battle against a 3.618 extension located at $58,326.
As the Bitstamp (FIAT) exchange neared the 0.786 retracement from ATH, a high volume 9% flash dump occurred directly down to the 0.618 retracement.
My tinfoil hat tells me this could have been a whale selling a large chunk of BTC.
In this area, there is also the 0.786 retracement from the ATH to the June 22nd bottom which BTC currently resides above and is testing for support.
The 0.786 retracement is typically a high R:R reversal area. There is also MACD divergence, and the RSI is struggling to break into overbought.
There is also the 10% drop in longs on Bitfinex just today. Month to date, longs on Bitfinex have dropped by 30.7%.
The confluence of supply and other situations here have a high possibility of creating a dramatic move in either direction, but my bias is to the downside unless BTC breaks above the 3.618 extension at $58,326. Be careful either way here.
As the Bitstamp (FIAT) exchange neared the 0.786 retracement from ATH, a high volume 9% flash dump occurred directly down to the 0.618 retracement.
My tinfoil hat tells me this could have been a whale selling a large chunk of BTC.
In this area, there is also the 0.786 retracement from the ATH to the June 22nd bottom which BTC currently resides above and is testing for support.
The 0.786 retracement is typically a high R:R reversal area. There is also MACD divergence, and the RSI is struggling to break into overbought.
There is also the 10% drop in longs on Bitfinex just today. Month to date, longs on Bitfinex have dropped by 30.7%.
The confluence of supply and other situations here have a high possibility of creating a dramatic move in either direction, but my bias is to the downside unless BTC breaks above the 3.618 extension at $58,326. Be careful either way here.
Comment
Forgot to put these in the main idea:15 Minute chart showing bearish divergence, a potential reversal signal at least temporarily.
30 Minute chart showing loss of momentum in the RSI with roughly equal highs.
Comment
wrong again.xd
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