Bitcoin has massive wicking. This hasn't happened since early 2018. When these wicks happened in early 2018, BIG moves were associated with it. Every dump is being bought up, UNDER massive support. Every pump is being dumped, ABOVE massive resistance. The trend is your friend. That means ... DOWN. Bitcoin is being held in place, in a very calculated manner, since we dropped. ...Why? Especially when we have Mr. Big Bad Inverted Head and Shoulders . ( IHS patterns typically occur when an existing downtrend has 'lost' momentum) (Key word 'lost'. Haha. Ya.) This is futures for you. However, futures need to profit... So, which direction do they go? Well, according to my friend lines, this is it. We break either of them and you can trade accordingly. Up, long. Down, short. ez.
For a LOT more information, and to see Bitmex charts corroborating this trade, see here:
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RSI is getting higher on the lows. Yeah yeah, it isn't traditional divergence, but it's something.
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Fair warning. On the macro timeframe, we may re-test the low and have bullish divergence in the RSI. Do not short if you see higher RSI on the macro.
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Breakout has occurred. Re-testing as we speak. This is a buy signal if it holds.
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If they break with momentum, it's a trade.
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Wow, I go away for literally 20 minutes and this happens. xD
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Short-term minor bullish trend line is broken. This is not the first time it has happened, however. Look to $3,800 for support, it has confluence with the 0.5 fib from this entire swing so far. The .618 is located just under $3,700. If the 0.5 fib or higher holds support, enter a long and set a stop for below either the .618, or the .786, depending on your risk tolerance.
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Here's what I'm starting to think may happen. Right now, XBT seems to be the only pairing that I can find, that is above the minor bullish trendline from the bottom. It is being confirmed as resistance, as we speak. That being said, if we can hold the pennant support at around $3,690 today, it would form another higher low giving another good opportunity for accumulation.
If you think about it, all this sideways on the daily during the right shoulder could just be accumulation. If you had a LOT of money you wanted to put into Bitcoin, because you knew it was about to make a very sizeable move upwards, you certainly wouldn't want to be buying resistance. You'd have to buy support, and that would take a *while*. Especially if a LOT of people/institutions are doing it.
That could be where all this wicking and sideways is coming from. It just so happens that on the new weekly candle on the 7th, the bull trendline meets the neckline of the IHS - 2 massive resistances in one. $3,950 breaks with authority and we're going to see a very big daily candle.