Hello Traders,
After 2 days of side way movement of Thursday dump, it is the time for another volatility. Bollinger band is already starting to narrow, which indicates imminent volatility.
Looking at 4 hour chart for Bitcoin, we see that whenever Bitcoin goes oversold or overbought region, Bitcoin always shows bearish or bullish divergence before the trend reversal. Therefore, I expect another dump before we see the upside trend reversal to form bullish divergence.
Additionally there are few more bearish signals:
1) Bearish wedge with decreasing volume
2) EMA 10/12 - historically when there is huge red candles, Bitcoin were usually rejected by EMA 10 or EMA 12
3) Stoch RSI cross over in favour for bears
Target for bearish breakout is $6200 for now, but expect sell off if it goes below $6200. My bearish view will be invalidated if it goes above $6355.
Happy trading!!
After 2 days of side way movement of Thursday dump, it is the time for another volatility. Bollinger band is already starting to narrow, which indicates imminent volatility.
Looking at 4 hour chart for Bitcoin, we see that whenever Bitcoin goes oversold or overbought region, Bitcoin always shows bearish or bullish divergence before the trend reversal. Therefore, I expect another dump before we see the upside trend reversal to form bullish divergence.
Additionally there are few more bearish signals:
1) Bearish wedge with decreasing volume
2) EMA 10/12 - historically when there is huge red candles, Bitcoin were usually rejected by EMA 10 or EMA 12
3) Stoch RSI cross over in favour for bears
Target for bearish breakout is $6200 for now, but expect sell off if it goes below $6200. My bearish view will be invalidated if it goes above $6355.
Happy trading!!
Note
This is probably the bull trap. Some traders may have jumped onto this move anticipating breakout from bearish wedge from the trendline resistance, but I have a feeling that bulls may trapped in this trade. 4 hour Stoch RSI is still flat, and there is no momentum for bull to make a move. I believe someone just bought huge sum of Bitcoin so they can dump it at right time.
Be careful, I am not really convinced of this pump.
Note
We should see dump now. 0.382 Fib, 26 EMA, Stoch RSI cross-over, Bollinger top band is just way too many resistances for Bitcoin.
Note
That was such an obvious bull trap. There were so many bearish divergence in 15 mins chart. That will probably be our high in this trend, so we need to form higher low now. Note
A lot of shorts opened up just last 15 mins. Will there be another round of dump?Note
Bulls are very aggressive today. After this bull defence, I need to change my bearish a little bit. There is a potential inverse head and shoulders talking place and target for this breakout is around $6440. Shorts in Bitfinex stopped increasing which indicate that we may push the price to that range. 4 hour chart still looks bearish, but I am preparing bullish set up after this move.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.