Bitcoin daily - continues its move to the up. After the pump above the falling blue trend line it moves above BigRed and then found resistance at a high just before FTX collapse. After a few days of consolidation, Bitcoind broke above those levels on a strong candle but not strong volume. Important thing is that most of this move (75% and more) was from stop loss activity not from new buyers. At the moment it is creating a shooting star reversal pattern.
Volume was strong but now is lower which is an indication of a possible slow in momentum.
It is above all major MA which is bullish.
RSI is way overbought and it is due for a pullback. Also, RSI has very strong negative/bearish divergences which will act as a pressure on price.
MACD is also way overbought and it is due for a retrace.
Overall: bitcoin had a very strong move and it is very likely it will retrace. The first major support will be this base which is a red dotted line. Would be very bullish if we see retracement on lower volume and smaller candles without any real panic.
However, if we see an increase in volume while retracing, we could see a major drop in bitcoin towards BigRedor maybe even lower.
Stoploss will be above high from today with the target at the last high base. We would enter in half lot size due to the strong move up!
Volume was strong but now is lower which is an indication of a possible slow in momentum.
It is above all major MA which is bullish.
RSI is way overbought and it is due for a pullback. Also, RSI has very strong negative/bearish divergences which will act as a pressure on price.
MACD is also way overbought and it is due for a retrace.
Overall: bitcoin had a very strong move and it is very likely it will retrace. The first major support will be this base which is a red dotted line. Would be very bullish if we see retracement on lower volume and smaller candles without any real panic.
However, if we see an increase in volume while retracing, we could see a major drop in bitcoin towards BigRedor maybe even lower.
Stoploss will be above high from today with the target at the last high base. We would enter in half lot size due to the strong move up!
Consistency is the key of success....
