PRICE ACTION
The 5m chart shows that resistance in building around $8000; however perhaps importantly; the bulls have been able to create a higher low – though it is marginally impressive to say the least.
The 1W chart is finally showing the breakdown of the parabola that pushed the RSI to its highest point of the last 12 months; and with last week closing as an uncertainty doji; we are likely to see this play through as an evening star pattern. Look for a continued pull back – with the 52W MA being the logical place for bulls to wait for their next entries. Retail traders are strange creatures though; so as always – anything could happen. Volume is low on the last 2 weekly candles; suggesting that the sentiment really is bullish, and this retracement is the stepping stone and confirmation period.
Previously marked up simply as a hypothetical; we are seeing the 1D candles continue to fill a rising channel. The middle of the channel is now around the $9k marker; so, with the weekly indicating that we need to come down further – it is expected that this channel will fall down. However, it is still interesting to pay attention to it. The price is currently testing the 28D MA – which has remained supportive all the way back to the beginning of February. If price does break below the channel & the 28D; this is an important development.
The 4H chart possibly gives us the biggest indication of what is to come. The price is currently playing off a base at $7500 which has seen a localised history as both support and resistance. This is down $1500 from the local high point @ $9000. IF this support at $7500 breaks; the logical extension pushes the price all the way back to $6000. With the exception of $7000; there is no local signs of any support below $7500 – and ultimately this also ties into the expectation that is being set up on the 1W chart. With RSI currently coming off an oversold base; we should – however – see a temporary rally. This should likely be a bull trap; and print a lower high – and create a descending triangle pattern to confirm the downside target.
OPEN INTERESTS (BITFINEX)
Long: 1.11 Days
Short: 1.07 Days
RELATIVE STRENGTHS
ON BALANCE VOLUME
KEY PRICE AREAS
Resistance: 7911 (28D MA), 7950, 9000
Support: 7500, 7000, 6156 (13W MA)
PREVIOUS ANALYSIS
The 5m chart shows that resistance in building around $8000; however perhaps importantly; the bulls have been able to create a higher low – though it is marginally impressive to say the least.
The 1W chart is finally showing the breakdown of the parabola that pushed the RSI to its highest point of the last 12 months; and with last week closing as an uncertainty doji; we are likely to see this play through as an evening star pattern. Look for a continued pull back – with the 52W MA being the logical place for bulls to wait for their next entries. Retail traders are strange creatures though; so as always – anything could happen. Volume is low on the last 2 weekly candles; suggesting that the sentiment really is bullish, and this retracement is the stepping stone and confirmation period.
Previously marked up simply as a hypothetical; we are seeing the 1D candles continue to fill a rising channel. The middle of the channel is now around the $9k marker; so, with the weekly indicating that we need to come down further – it is expected that this channel will fall down. However, it is still interesting to pay attention to it. The price is currently testing the 28D MA – which has remained supportive all the way back to the beginning of February. If price does break below the channel & the 28D; this is an important development.
The 4H chart possibly gives us the biggest indication of what is to come. The price is currently playing off a base at $7500 which has seen a localised history as both support and resistance. This is down $1500 from the local high point @ $9000. IF this support at $7500 breaks; the logical extension pushes the price all the way back to $6000. With the exception of $7000; there is no local signs of any support below $7500 – and ultimately this also ties into the expectation that is being set up on the 1W chart. With RSI currently coming off an oversold base; we should – however – see a temporary rally. This should likely be a bull trap; and print a lower high – and create a descending triangle pattern to confirm the downside target.
OPEN INTERESTS (BITFINEX)
Long: 1.11 Days
Short: 1.07 Days
RELATIVE STRENGTHS
- Micro (5m): Neutral
- Short Term (4h): Oversold
- Mid Term (1D): Neutral
- Macro (1W): Weakening
ON BALANCE VOLUME
- Mid Term (1D): Flat
- Macro (1W): Rising
KEY PRICE AREAS
Resistance: 7911 (28D MA), 7950, 9000
Support: 7500, 7000, 6156 (13W MA)
PREVIOUS ANALYSIS