BTC Correction or 4000?
Updated
Hey guys, how are you all doing?
Crazy volatility on Sunday. It will get crazier with Volatility in S&P 500 choppy and unpredictable, and dangerous to catch the wild moves as it is prone to slippage.
The same volatility was seen in BTC last night.This week will be brutal. Companies are illiquid and the dollar value will rise in a few weeks because everybody is gonna want cash. Its shortage outside the US will only fuel the liquid crunch, and the cycle will repeat until some hedge funds will collapse and debt market will soon follow (majority of debts they hold have a very low rating- JUST ABOVE JUNK). The extra dollars printed in the US will result in hyperinflation but this is not the worse yet, COVID has yet to peak in the US and Europe. And this coming week will be a big test for crypto. With this in mind, let's dive into my chart.
Key Indicators:
1. Stoch RSI at H4 is currently at bottom, it has a potential to swing higher but BUY VOLUME just isn't there. D1 is almost at top. this means we could drop lower.
2. RVGI: at D1 is still a go but it has yet to truly cross mid line to 0 in order to fuel the bullish momentum.
3. Price Levels:
- Support at 5600 which is also the .50 fib of the rally from 4400 to 6900. If we go below this week we might see 4000.
- Resistance at 6000: We need to go higher in order to regain the rally and build on the bullish momentum for 7000. If we fail to move to 6000 and maintain for one Daily candle this week, then we are going low to 5000.
- Chart Patterns: Parallel channel at H4 reflecting the consolidation. expect very high volatility.
4. Volume: We dont see any significant volume going up or down. Consolidation in the H4 range from 5800 to 6200 is expected.
5. Sentiment: Everyone is fearful. And they should be. Economy is in a RECESSION and it wont distinguish crypto and stocks, bonds or gold. Liquidity crunch and hyperinflation are just the beginning.
Bias: Short. No new money, everyone is looking for cash. dollar is still king.
Precaution: Pumps may come to try and tap the liquidity zones sitting at 6000. Volume will determine whether its a fake out. Volatility will be brutal. trade smaller and bigger Time Frames at least H1.
Safe Trades Everyone and keep safe!
Crazy volatility on Sunday. It will get crazier with Volatility in S&P 500 choppy and unpredictable, and dangerous to catch the wild moves as it is prone to slippage.
The same volatility was seen in BTC last night.This week will be brutal. Companies are illiquid and the dollar value will rise in a few weeks because everybody is gonna want cash. Its shortage outside the US will only fuel the liquid crunch, and the cycle will repeat until some hedge funds will collapse and debt market will soon follow (majority of debts they hold have a very low rating- JUST ABOVE JUNK). The extra dollars printed in the US will result in hyperinflation but this is not the worse yet, COVID has yet to peak in the US and Europe. And this coming week will be a big test for crypto. With this in mind, let's dive into my chart.
Key Indicators:
1. Stoch RSI at H4 is currently at bottom, it has a potential to swing higher but BUY VOLUME just isn't there. D1 is almost at top. this means we could drop lower.
2. RVGI: at D1 is still a go but it has yet to truly cross mid line to 0 in order to fuel the bullish momentum.
3. Price Levels:
- Support at 5600 which is also the .50 fib of the rally from 4400 to 6900. If we go below this week we might see 4000.
- Resistance at 6000: We need to go higher in order to regain the rally and build on the bullish momentum for 7000. If we fail to move to 6000 and maintain for one Daily candle this week, then we are going low to 5000.
- Chart Patterns: Parallel channel at H4 reflecting the consolidation. expect very high volatility.
4. Volume: We dont see any significant volume going up or down. Consolidation in the H4 range from 5800 to 6200 is expected.
5. Sentiment: Everyone is fearful. And they should be. Economy is in a RECESSION and it wont distinguish crypto and stocks, bonds or gold. Liquidity crunch and hyperinflation are just the beginning.
Bias: Short. No new money, everyone is looking for cash. dollar is still king.
Precaution: Pumps may come to try and tap the liquidity zones sitting at 6000. Volume will determine whether its a fake out. Volatility will be brutal. trade smaller and bigger Time Frames at least H1.
Safe Trades Everyone and keep safe!
Trade closed: stop reached
Hey guys we are now back again to 6000.and H4 shows good buy momentum. and my stock RSI at D1 has yet to cross bottom.
For my algo, if price action continues in the same direction but Stoch RSI has reached top then it means there's a strong possibility that it will continue in a higher time frame. in this case W1 is at bottom of Stoch RSI.
Volume is also above average buy volume at H4. so im discounting the possibility of this action being a fake out.
Bullish divergence at D1 still intact although it appeared to go down at H4 but has since moved back up.
in summary H4 algo is a go for the bulls-
volume, bullish divergence, stoch RSI, RVTI, Log Macd are all good for long.
another note, markets have rallied after news broke that there will be an expanded stimulus package.
crypto and stocks showing strong correlation.
Keep SL and Observe solid risk management.
i'm waiting for H4 to close before making an entry.
Safe trades and keep safe all 🙏
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