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HolRiz
Feb 15, 2023 10:41 AM

BTCUSD Bull Trap? - OBV divergence  Short

Bitcoin / United States DollarCoinbase

Description

Looking at OBV collated from all major BTC exchanges and fiat pairs (collected from 1 min timeframes), we can see massive divergence between price and On Balance Volume.

There is alot more selling volume than buying volume, which makes it look like this is a dangerous rally to buy into. I expect to see a wick up to destroy the shorts and trigger stops, then a crash back down to continue down to the massive liquidity store around the 20k mark.

I am no expert so don't trade on my advice, but there is clearly a divergence between volume and price here.

The old adage goes "Never Short Bitcoin".

But I am wary of this rally as another adage goes "Price goes where Volume shows".
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