XBTUSD 4H chart (7/22/2019)
Updated
Good morning, traders. After making a high of $11132 this weekend, Bitcoin's price has seen some pullback. It appears that price may be printing a triangle as it completes the local TR. Currently, price is sitting just above the TR's EQ. It's never a smart idea to initiate a position when price is in this area. Traders will save themselves much stress and capital by patiently waiting at this point. If price continues below the TR support, then I would be looking for price to bounce out of the blue demand depending on how strong the supply volume is as price heads toward that level. Strong supply incoming would have me watching for the bounce off the S1 pivot at $9405 instead. If price continues up from here, then there are two possibilities: 1) likely consolidation around the top of the local TR before pushing higher toward my green or orange boxes, or 2) that move to the top of the TR would complete the D leg of the triangle with the E leg then following, no lower than the ascending dotted support line, before price pushes toward those green and orange boxes.
The 1H RSI is currently testing its resistance and Stoch RSI crossed bullishly earlier this morning. Both indicators have a lot of room to run to the upside. Price currently sits above the pivot. The 4H RSI recently printed hidden bullish divergence while Stoch RSI is potentially crossing bearishly. However, there is still 2 hours left in this candle, so it's too early to tell how it will close. Price is finding support on the 21 EMA at this time, above the larger blue TR's support, and resistance at the descending channel EQ.
The daily chart shows the hidden bullish divergence that printed just under a week ago, as well as RSI having broken through its resistance. Stoch RSI is threatening to cross bearishly, but with another 9 hours left til close it's too early to know what will happen. We see price consolidating around the dailiy pivot and descending channel EQ, which often signals continuation upward, but until price closes above the 21 EMA traders should continue to be cautious. Important to note is that supply volume has continued to drop off which is most often indicative of supply exhaustion. The 3D chart looks strong. Price printed a large bullish engulfing candle while bouncing off the 21 EMA and finding resistance at the pivot and descending channel EQ. This came on the heels of RSI printing hidden bullish divergence. As such, the idea that price will print lower lows without at least first heading higher for another week or so seems far-fetched. The hidden bullish divergence needs time to play out and this is a rather large TF. Stoch RSI is currently crossing bullishly in oversold after bottoming out.
The weekly chart is what bears are using to support their narrative, however it just shows what should be expected - the back and forth between supply and demand as they even out. We can see alternating long upper and lower weekly wicks which attest to this. The weekly chart does not scream bearish drop to $8500 or lower. While possible, it isn't guaranteed in the weekly chart by any means, contrary to the bears. Price continues to close above the pitchfork's median line for now which is bullish. RSI is just below overbought at 68 and Stoch RSI is below overbought as well. Price is just a few hundred dollars below the monthly open which was $10761. This is printing a spinning top which many amateur traders will immediately start screaming reversal. Be wary of these individuals. A spinning top is a pause. Nothing more, nothing less. It tells us that neither supply nor demand ultimately had control for that period, but that they both were in control at some point during it. The candle after that spinning top lets us know which way price is headed. That being said, historically it seems that Bitcoin continues up if this spinning top is found in a bullish trend so traders should most likely be expecting only a corrective movement within the larger bullish trend at worst, which is what we are currently experiencing.
_____________________________________________________________
Be sure to hit the "thumbs up!"
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
You can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own. When you do, be sure to explore the other TFs to see what I'm watching on those TFs.
The 1H RSI is currently testing its resistance and Stoch RSI crossed bullishly earlier this morning. Both indicators have a lot of room to run to the upside. Price currently sits above the pivot. The 4H RSI recently printed hidden bullish divergence while Stoch RSI is potentially crossing bearishly. However, there is still 2 hours left in this candle, so it's too early to tell how it will close. Price is finding support on the 21 EMA at this time, above the larger blue TR's support, and resistance at the descending channel EQ.
The daily chart shows the hidden bullish divergence that printed just under a week ago, as well as RSI having broken through its resistance. Stoch RSI is threatening to cross bearishly, but with another 9 hours left til close it's too early to know what will happen. We see price consolidating around the dailiy pivot and descending channel EQ, which often signals continuation upward, but until price closes above the 21 EMA traders should continue to be cautious. Important to note is that supply volume has continued to drop off which is most often indicative of supply exhaustion. The 3D chart looks strong. Price printed a large bullish engulfing candle while bouncing off the 21 EMA and finding resistance at the pivot and descending channel EQ. This came on the heels of RSI printing hidden bullish divergence. As such, the idea that price will print lower lows without at least first heading higher for another week or so seems far-fetched. The hidden bullish divergence needs time to play out and this is a rather large TF. Stoch RSI is currently crossing bullishly in oversold after bottoming out.
The weekly chart is what bears are using to support their narrative, however it just shows what should be expected - the back and forth between supply and demand as they even out. We can see alternating long upper and lower weekly wicks which attest to this. The weekly chart does not scream bearish drop to $8500 or lower. While possible, it isn't guaranteed in the weekly chart by any means, contrary to the bears. Price continues to close above the pitchfork's median line for now which is bullish. RSI is just below overbought at 68 and Stoch RSI is below overbought as well. Price is just a few hundred dollars below the monthly open which was $10761. This is printing a spinning top which many amateur traders will immediately start screaming reversal. Be wary of these individuals. A spinning top is a pause. Nothing more, nothing less. It tells us that neither supply nor demand ultimately had control for that period, but that they both were in control at some point during it. The candle after that spinning top lets us know which way price is headed. That being said, historically it seems that Bitcoin continues up if this spinning top is found in a bullish trend so traders should most likely be expecting only a corrective movement within the larger bullish trend at worst, which is what we are currently experiencing.
_____________________________________________________________
Be sure to hit the "thumbs up!"
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
You can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own. When you do, be sure to explore the other TFs to see what I'm watching on those TFs.
Note
Historical spinning tops during a bullish trend.
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.