Note: 100DMA is not really important, just included it because rejected on 14 AUG, so some traders might give it weight, which adds to short positions.
What's relevant:
Confluence of trendlines that present a perfect short position if it wasn't for the short-term bullish momentum.
However, it is clear to me this momentum came from a short squeeze out of a descending wedge backed by bullish hidden divergence on the RSI
This provides a great opportunity from a whale's perspective to fabricate a pump and dump. I think this is what's happening.
Structurally, if you consider the early June to late August to be a bear flag, this P.A is retesting the lower line of the flag which is a classic chart pattern.
Despite the short-term bullish momentum, there's real possibility whales will dump, triggering another large sell-off late September.
This will be invalidated by breaking 23k.
Bullish scenario:
If price breaks into flag and closes above near 18 Sep, this resistance could turn into support.
What's relevant:
Confluence of trendlines that present a perfect short position if it wasn't for the short-term bullish momentum.
However, it is clear to me this momentum came from a short squeeze out of a descending wedge backed by bullish hidden divergence on the RSI
This provides a great opportunity from a whale's perspective to fabricate a pump and dump. I think this is what's happening.
Structurally, if you consider the early June to late August to be a bear flag, this P.A is retesting the lower line of the flag which is a classic chart pattern.
Despite the short-term bullish momentum, there's real possibility whales will dump, triggering another large sell-off late September.
This will be invalidated by breaking 23k.
Bullish scenario:
If price breaks into flag and closes above near 18 Sep, this resistance could turn into support.
Comment:
I'm thinking November-December DXY comes down