Seems Bitcoin is still priming for a small end of year pump but I think the USD/USDT premium may have been the main reason for this delay. The tether to dollar parity has pretty much been restored again so the tether exchanges can start realigning with the non-tether exchanges now that the price premiums are closing in.
This was a unique situation with the large premiums between exchanges which caused divergence between the exchange charts and a lot of uncertainty in the market which needed to be shaken off before an end of year rally.
Goes to show how important tether still is to the crypto ecosystem. Good to see the arbitrage traders gaining some confidence in tether again and the market in general has shaken off the FUD. Now we can look towards an end of year bump some time in early November. This drop was just a shakeout imo.
Target 1 remains $7140 with possible extension to $7400. I'm still bullish since we found support at the blue trend line of the larger symmetrical triangle which means it's still in play as well as the smaller falling wedge.
Had BTC closed below this blue support on the 1D chart, I would have been more worried but the drop we just experienced from $6500 wasn't significant at all considering the build up within the triangle and the drop happened with relatively lower volume than expected which tells me that there really isn't much selling pressure left in the market right now and this was most probably just a shakeout of weak hands before the short term move up.
RSI and Stochastics are also oversold on all of the time frames up to the 1 day chart so there really isn't much room left to the downside and we have hidden bullish divergence as can be seen by the yellow arrows which has a higher chance of playing out at the larger timeframe. Price may touch $6285 support however I don't believe it's going below that.
Patience will be the name of the game until this boring stability ends and BTCUSD shows its hand but really just a few more days to go looking at the charts and not much room left within the larger triangle.
Side note: While bitcoin sits pretty, it's a great time to be trading altcoins since they're bouncing at different stages. I'll post a couple of my altcoin trades shortly with short term targets.
Good luck and happy trading!
Previous chart:
This was a unique situation with the large premiums between exchanges which caused divergence between the exchange charts and a lot of uncertainty in the market which needed to be shaken off before an end of year rally.
Goes to show how important tether still is to the crypto ecosystem. Good to see the arbitrage traders gaining some confidence in tether again and the market in general has shaken off the FUD. Now we can look towards an end of year bump some time in early November. This drop was just a shakeout imo.
Target 1 remains $7140 with possible extension to $7400. I'm still bullish since we found support at the blue trend line of the larger symmetrical triangle which means it's still in play as well as the smaller falling wedge.
Had BTC closed below this blue support on the 1D chart, I would have been more worried but the drop we just experienced from $6500 wasn't significant at all considering the build up within the triangle and the drop happened with relatively lower volume than expected which tells me that there really isn't much selling pressure left in the market right now and this was most probably just a shakeout of weak hands before the short term move up.
RSI and Stochastics are also oversold on all of the time frames up to the 1 day chart so there really isn't much room left to the downside and we have hidden bullish divergence as can be seen by the yellow arrows which has a higher chance of playing out at the larger timeframe. Price may touch $6285 support however I don't believe it's going below that.
Patience will be the name of the game until this boring stability ends and BTCUSD shows its hand but really just a few more days to go looking at the charts and not much room left within the larger triangle.
Side note: While bitcoin sits pretty, it's a great time to be trading altcoins since they're bouncing at different stages. I'll post a couple of my altcoin trades shortly with short term targets.
Good luck and happy trading!
Previous chart:
