Hello traders! What a crazy weekend for Bitcoin. After a 50M buy in from the company, Square, we have seen a small rally to the upside. A lot of shorts were liquidated along the way, but that shouldn't stop the bears from taking new positions. Let's take a clear look at the TWO CME Gaps on our timeline currently.
Technicals:
1. We are seeing a clear attempt by the bears trying to fill the CME gap just created over the weekend. This was to be predicted, especially after a strong, low volume rally. 2. Gap filling traditions have been statistically shown that BTC will always fill gaps! Please take a look at our analysis on showing the average time to fill gaps via our CME Gap Theory that was an 'editor's pick':
3. We are also seeing a possible RSI Bearish divergence on the 4H chart. We are seeing extremely overbought levels at the moment, followed by a large sell off. This sell off makes the oscillator drop, while the price remained in tact, giving a chance for the bulls to re-attempt a 4-5% move to the upside. With bearish pressure that is now apparent, we can assume to see a bearish RSI divergence.
Thanks for the update Eric. Don't you think we might see 12k before heading back to the 9.6k CME gap, as it is a lot closer to where we are at now?
XForceGlobal
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@immysl VERY possible we can see a move up, as I have shown in my chart. But that will be even a stronger bearish case for me, personally! I think we might able to see 11.8-12k regions, so its best to be exposed to the market in the case it does go down but also not too much where you are also being at risk for liquidation or problems with funds. Risk management is key. Never try to time the market, especially with assumptions such as, “wont we see 12-14k first?” Of course it can! But our general direction has never been wrong for the past several months. Make sure to keep this mind, buddy!
immysl
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@XForceGlobal Thanks for the succinct response. Will keep this in mind before opening a new position again.
SunnyHillCapital
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Classic throw-over occurring of a wedge pattern, thanks for sharing!
XForceGlobal
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@SunnyHillCapital, Thanks Sunny! Always love having your feedback on my charts. You are more than welcome to post your original ideas here too.
SunnyHillCapital
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@XForceGlobal, Thank you! Really appreciate your kindness! Good luck this week!
moksongmin
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Great chart and outlook, as always!
XForceGlobal
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@moksongmin, Thanks as always Mok! You are one of the most valuable core community members for me!
moksongmin
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@XForceGlobal, you are welcome! I am glad to hear that!