thanks for your analysis! why would a close above 42.5k negate a top? it would seem to me it could still bounce as high as 47k, followed by a crash as low as 38k?
molbioinfo
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@handyrams8, 42.5K is the previous high, so it if makes a lower low and lower high (breaking the support of the triangle), it suggest initiation of reversal. A higher high (over $42.5) negates that reversal and can suggest initiation of push to test the upper boundary of the triangle. Also, look at how Peter has marked the lower lows and lower highs in the RSI, showing that in this price uptrend the proportion of price advances vs price retreats is dwindling.
handyrams8
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@molbioinfo I like the way you worded that much better.
molbioinfo
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@handyrams8, thanks! Peter's words are on the plot itself, I just try to learn :) I also think that his sentences are short and just give pointers, so people can interpret and maybe challenge, but at least raise questions to themselves and learn. I might be wrong thinking that, but hey, what matters is to get motivated wherever way.
molbioinfo
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@handyrams8, Just a note, from other posts I looked up the liquidation charts coinglass.com/pro/futures/LiquidationMap, so beware that a push above $42.5 and possibly up to 45K or more could come from a liquidation cascade (2B in shorts!). Once those shorts evaporate it can come down again, so beware of high volume candles that are not followed up by further volume, and price candles with a long top wick in a 2-day interval. Surely @PeterLBrandt can give better advice, hopefully I'm making sense.
handyrams8
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got it. in fact, I'm counting on that very scenario to exit my long position.