Bearish case:
- If 69k was our 5th and final wave, RSI failed to make a HH which is typical of a weak final 5th Elliot Wave. Price made a new high and RSI made a bearish divergence.
- Weak volume with next to no strength in flow of the move
Bullish case:
- Given EW theory, the 3rd wave should have significant volume and the 5th should display a clear decline in volume after the 3rd wave. So if 69k was the top 5th wave, we did not see this in volume, rather we saw a constant 'resistance' in volume with no real significant decline
- RSI did not have as sharp and aggressive decline after our "peak," like we saw in 2018. A much slower downward trend with not a lot of confidence, now reaching bear market historical lows
- OBV had next to no peak like we saw in 2018, and though recently it's flat-lined it is still technically making HH's and HL's (this is displayed on multiple exchanges)
When volume dies out, it usually precedes a significant move, I've said this before in my other posts. I'd like to see a clear decision down or up that would kick-start our next run up with strong spike in volume.
I've taken this info from multiple exchanges, not just this one you see above.
In the end, Bulls and Bears can both be right and still profit together, just depends the timing of it and the side you are on at the time of the move.
Right now is the time to be objective and not marry your bias.
V
- If 69k was our 5th and final wave, RSI failed to make a HH which is typical of a weak final 5th Elliot Wave. Price made a new high and RSI made a bearish divergence.
- Weak volume with next to no strength in flow of the move
Bullish case:
- Given EW theory, the 3rd wave should have significant volume and the 5th should display a clear decline in volume after the 3rd wave. So if 69k was the top 5th wave, we did not see this in volume, rather we saw a constant 'resistance' in volume with no real significant decline
- RSI did not have as sharp and aggressive decline after our "peak," like we saw in 2018. A much slower downward trend with not a lot of confidence, now reaching bear market historical lows
- OBV had next to no peak like we saw in 2018, and though recently it's flat-lined it is still technically making HH's and HL's (this is displayed on multiple exchanges)
When volume dies out, it usually precedes a significant move, I've said this before in my other posts. I'd like to see a clear decision down or up that would kick-start our next run up with strong spike in volume.
I've taken this info from multiple exchanges, not just this one you see above.
In the end, Bulls and Bears can both be right and still profit together, just depends the timing of it and the side you are on at the time of the move.
Right now is the time to be objective and not marry your bias.
V
Vatsik