Drop to $6350 to eliminate the USD/USDT divergence, then $7150!
Updated
Bitcoin: As the market plays out we can see that the falling wedge may now be turning into a larger bullish flag. For the short term, BTCUSDT is in a bearish ascending wedge on the shorter tf. Stochastic and RSI still has room to the downside so we may have a slight correction back to our $6700 support. If we don't find support at $6700, a smaller descending triangle will have formed and I expect a larger drop to the bottom of the bull flag to test our $6350 support before taking a stronger move up from there. We have also started entering overbought territory on the daily chart. If BTCUSDT is able to drop back to similar levels as BTCUSD this should put an end to the USD/USDT divergence between the exchanges. Only then can the entire market move up again since there would be more trust in tether's relative value which makes up a significant proportion of the crypto ecosystem. In fact this is probably needed to shake off the FUD and start pricing in any positive fundamentals. I expect a mid term rally to around $7150 (0.618 using Fibonacci retracement). Whether we drop to new lows from there is another story.
Happy trading and good luck!
Previous chart:
Happy trading and good luck!
Previous chart:
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Seems the drop back to $6350 took a while but the USD/USDT premium has been mostly eliminated. tether almost back to parity with USD so looking for the move back up.Updated chart:
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