Bitcoin 4h look:
We can see on the 4H that a symmetrical triangle has formed, this is an un-biased pattern, although we are in a clear uptrend, and these kinds of patterns usually come as continuation patterns, the green boxes, and red boxes mark, support, and resistance areas. Regardless of this being a continuation pattern, we must pay attention to the other indications that we are seeing, we can clearly see that the sell volume is significantly higher to the buy volume. This could mean that we could have a liquidation event heading us to the lower green box support area, before being able to move upwards. We do have an un-confirmed bearish divergence on the RSI, well see how it plays out. My bias is bullish, and IMHO we should be seeing a new ATH soon.
Bitcoin 1H:
In the 1-hour timeframe, we can see that we have created equal lows (Purple horizontal trendline), and the liquidity was swept out of the market in the last dump, this is good, although we see a clear imbalance area (price inefficiency area). This is a very technical term, but short story long. This is a place where the price was not able to cover short positions, this because the price moved too quickly. This creates areas were the price in not in balance, and we usually fill these areas. Having this in mind I am looking out for a quick wick down into the imbalance, which lines up with the equal lows, before moving further upwards.
What are your thoughts?
We can see on the 4H that a symmetrical triangle has formed, this is an un-biased pattern, although we are in a clear uptrend, and these kinds of patterns usually come as continuation patterns, the green boxes, and red boxes mark, support, and resistance areas. Regardless of this being a continuation pattern, we must pay attention to the other indications that we are seeing, we can clearly see that the sell volume is significantly higher to the buy volume. This could mean that we could have a liquidation event heading us to the lower green box support area, before being able to move upwards. We do have an un-confirmed bearish divergence on the RSI, well see how it plays out. My bias is bullish, and IMHO we should be seeing a new ATH soon.
Bitcoin 1H:
In the 1-hour timeframe, we can see that we have created equal lows (Purple horizontal trendline), and the liquidity was swept out of the market in the last dump, this is good, although we see a clear imbalance area (price inefficiency area). This is a very technical term, but short story long. This is a place where the price was not able to cover short positions, this because the price moved too quickly. This creates areas were the price in not in balance, and we usually fill these areas. Having this in mind I am looking out for a quick wick down into the imbalance, which lines up with the equal lows, before moving further upwards.
What are your thoughts?