Moon_Rocket_Capital

Has Bitcoin signaled a sell off?

Short
BITFINEX:BTCUSD   Bitcoin
PRICE ACTION
Starting with the 4H chart; we see that RSI has moved back to test the top of the descending channel; and the price movement above $5150 has lacked any kind of volume as all. Leading on from here, the 5m chart has been printed lower highs on the RSI over the last 24 hours; and again – outside of a small number of impulse candles – volume has been non-existent.

Not the start of the weak that any hyper bullish traders would want to be seeing...

Taking a quick peak at the weekly chart; we closed with an indecision doji off the back of a large solid green candle. As a high odds trade; a short position here makes sense. Using either the previous high or the 52W MA at the risk (take a small initial...) and make your adjustment to create a 2-2.5x RR.

Finally, it may be insignificant however about 5% of open margin on the long side closed over the weekend. Let’s see if that has meaning over the next few days.

OPEN INTERESTS (BITFINEX)
Long: 2.08 Days
Short: 1.62 Days

RELATIVE STRENGTHS
  • Micro (5m): Weak
  • Short Term (4h): Lower High
  • Mid Term (1D): Slightly overbought
  • Macro (1W): Hidden Bearish

ON BALANCE VOLUME
  • Mid Term (1D): Higher
  • Macro (1W): Weakening

KEY PRICE AREAS
Resistance: 5500, 5750 (52W MA), 6200
Support: 4880, 4608 (28D MA), 4380 (26W MA)

PREVIOUS ANALYSIS

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