Throughout the summer price action has enjoyed support from a well established support line since the correction in March. That trend line was broken yesterday and buyers were quick to catch the drop, which I suspect will continue in the days ahead.
The facts:
1) Price action remains in a uptrend. Market structure remains intact as long as higher lows are produced. A breakdown of 3200 would be the alarm that tells us the structure is broken.
2) Price action has moved to the bearish half of the Bollinger Band.
3) There is a notable 2-year bearish divergence formation on the monthly chart (below) between price action and RSI. Very bearish.
Can price action continue higher? For sure. Is it probable? No. Would I buy? Not if you were throwing money at me.
Monthly chart - bearish divergence

The facts:
1) Price action remains in a uptrend. Market structure remains intact as long as higher lows are produced. A breakdown of 3200 would be the alarm that tells us the structure is broken.
2) Price action has moved to the bearish half of the Bollinger Band.
3) There is a notable 2-year bearish divergence formation on the monthly chart (below) between price action and RSI. Very bearish.
Can price action continue higher? For sure. Is it probable? No. Would I buy? Not if you were throwing money at me.
Monthly chart - bearish divergence
Note
Are you Robinhood trader? Do you see the dip? Are you tempted to spend spend spend?Please don't. Switch off the phone/computer - just walk away!
Note
At close on Friday Stochastic RSI crossed below 80 (orange circle) - look left - nothing every good happened following this cross down.The monthly bearish divergence above is now match by a weekly bearish divergence in the chart below. Divergencies everywhere! Might be time to get a lifejacket whilst there's still time.
Note
The monthly chart is printing an incredibly bullish signal at the moment. Hard to believe. So what's happening?Price action has broken through resistance and now appears to be back-testing as support. If that support is confirmed at the month end - we're going to see fireworks.
Everyone is expecting a crash - is it possible the very opposite could happen? I'm starting to wonder!
BTC
bc1q2eckdzh0q8vsd7swcc8et6ze7s99khhxyl7zwy
Weblink: patreon.com/withoutworries
Allow 3-6 months on ideas. Not investment advice. DYOR
bc1q2eckdzh0q8vsd7swcc8et6ze7s99khhxyl7zwy
Weblink: patreon.com/withoutworries
Allow 3-6 months on ideas. Not investment advice. DYOR
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.
BTC
bc1q2eckdzh0q8vsd7swcc8et6ze7s99khhxyl7zwy
Weblink: patreon.com/withoutworries
Allow 3-6 months on ideas. Not investment advice. DYOR
bc1q2eckdzh0q8vsd7swcc8et6ze7s99khhxyl7zwy
Weblink: patreon.com/withoutworries
Allow 3-6 months on ideas. Not investment advice. DYOR
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.