PRICE ACTION
Despite all the volatility in recent days; there has been no volatility...
Starting with the 4h chart, we can see that we are largely where we started 4 weeks ago; with the vast majority of the action happening within ±400 of the $10,200 price point; and all action happening within ±800. In a historically volatile market; this is just mild chop. As it stands right now; we are right in the middle of that range – so there is no clearly opportunity to trade this.
The 1m chart also shows how important the market is treating $10,200 – with the drop below very quickly shedding 2% off the market price. Volume spiked sharply; and RSI plummeted – so look for a soft rally here if you are intraday trading.
The 1D chart saw a bearish cross occur last week – as the 28D MA crossed below the 13W MA. Price had previously been tracking to the 13W MA; however, since the cross is appearing to be trending towards the 28D – suggesting we could see further downward pressure. RSI is slightly bearish and volume is very weak.
Finally, the 1W chart returns us back to the first point. In 4 weeks, we have done nothing. Weekly closes since 17-Jun have been $10,500 ±1000. RSI is returning to a test of the 50.0 though, which should offer some form of volatility movement. There is a slightly hidden bearish divergence off the 03-Jun low; though the downside risk on this play is severe – so best to look for other indicators and use this as a secondary for confirmation purposes.
OPEN INTERESTS (BITFINEX)
Long: 3.92 Days
Short: 1.77 Days
RELATIVE STRENGTHS
ON BALANCE VOLUME
KEY PRICE AREAS
Resistance: 10234 (28D MA), 10517 (13W MA), 10950
Support: 9850, 9350, 8518 (26W MA)
PREVIOUS ANALYSIS
Despite all the volatility in recent days; there has been no volatility...
Starting with the 4h chart, we can see that we are largely where we started 4 weeks ago; with the vast majority of the action happening within ±400 of the $10,200 price point; and all action happening within ±800. In a historically volatile market; this is just mild chop. As it stands right now; we are right in the middle of that range – so there is no clearly opportunity to trade this.
The 1m chart also shows how important the market is treating $10,200 – with the drop below very quickly shedding 2% off the market price. Volume spiked sharply; and RSI plummeted – so look for a soft rally here if you are intraday trading.
The 1D chart saw a bearish cross occur last week – as the 28D MA crossed below the 13W MA. Price had previously been tracking to the 13W MA; however, since the cross is appearing to be trending towards the 28D – suggesting we could see further downward pressure. RSI is slightly bearish and volume is very weak.
Finally, the 1W chart returns us back to the first point. In 4 weeks, we have done nothing. Weekly closes since 17-Jun have been $10,500 ±1000. RSI is returning to a test of the 50.0 though, which should offer some form of volatility movement. There is a slightly hidden bearish divergence off the 03-Jun low; though the downside risk on this play is severe – so best to look for other indicators and use this as a secondary for confirmation purposes.
OPEN INTERESTS (BITFINEX)
Long: 3.92 Days
Short: 1.77 Days
RELATIVE STRENGTHS
- Micro (5m): Oversold
- Short Term (4h): Weak
- Mid Term (1D): Slightly Weak
- Macro (1W): Slightly Strong
ON BALANCE VOLUME
- Mid Term (1D): Flat
- Macro (1W): Flat
KEY PRICE AREAS
Resistance: 10234 (28D MA), 10517 (13W MA), 10950
Support: 9850, 9350, 8518 (26W MA)
PREVIOUS ANALYSIS