Good morning, traders. After the recent drop and immediate reversal price has continued to move sideways adding to traders' already pessimistic attitudes and boredom. But don't let the market lull you to sleep. These are precisely the times traders need to be extremely aware of what's going on as sudden moves often do happen and catch sleeping traders off guard. Bitmex supply side order book looks much less aggressive than it has for the past week and its buy side is stacking up once again. Bitfinex order book continues to be the leader for the spot market with demand spikes currently showing 1070 BTC at $3410 with 500 more at $3350 and another 611 at $3300, while supply side is showing 801 BTC at $3800.
What we have is a continued slow drift downward within a descending wedge near the bottom of a descending channel on the D1 chart. D1 RSI also remains within the descending wedge that it has been printing and MACD remains flat with possible bullish divergence printing across November 27th til January 31st. We need to see MACD curling up before we can confirm this though. H4 RSI continues to print a symmetrical triangle which could lead to a break up. But in order to do so, demand must overcome supply. The higher RSI lows show demand increasing, but the lower highs indicate that supply is still pressuring the pair. In other words, as I have been saying, demand and supply are fighting hard for position. The weekly 200 MA is sitting at $3314 currently with weekly volume near the lows seen just before price dropped through the $6000 floor, so I wouldn't be surprised to see a retest of that MA.
An objective look at what's going on, especially if you compare it to 2015, suggests that we should get a bounce off the 200 MA area, followed by a move toward the top of the TR and the descending ATH resistance, then a move back down to the bottom of the TR for a Spring followed by a move up and out of the TR. I'm not telling anyone to change their minds about moves toward $2000 and lower, only reminding them that price has continued to set up this particular move and it aligns with the weekly look at the 2015 correction. Switching from candles to line view makes the picture much clearer and I will take a look at that during this morning's live stream. Remember, my goal isn't to convince you that you are right, wrong, or otherwise, only to help you keep your emotional bearishness in check so that you trader smarter and protect your capital. At the end of the day, we are still in a corrective market until proven otherwise so the trend is down. The key is to pay attention to what's going on so that you can notice potential reversals setting up and keep from getting caught in the wrong direction when the market does reverse.
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
What we have is a continued slow drift downward within a descending wedge near the bottom of a descending channel on the D1 chart. D1 RSI also remains within the descending wedge that it has been printing and MACD remains flat with possible bullish divergence printing across November 27th til January 31st. We need to see MACD curling up before we can confirm this though. H4 RSI continues to print a symmetrical triangle which could lead to a break up. But in order to do so, demand must overcome supply. The higher RSI lows show demand increasing, but the lower highs indicate that supply is still pressuring the pair. In other words, as I have been saying, demand and supply are fighting hard for position. The weekly 200 MA is sitting at $3314 currently with weekly volume near the lows seen just before price dropped through the $6000 floor, so I wouldn't be surprised to see a retest of that MA.
An objective look at what's going on, especially if you compare it to 2015, suggests that we should get a bounce off the 200 MA area, followed by a move toward the top of the TR and the descending ATH resistance, then a move back down to the bottom of the TR for a Spring followed by a move up and out of the TR. I'm not telling anyone to change their minds about moves toward $2000 and lower, only reminding them that price has continued to set up this particular move and it aligns with the weekly look at the 2015 correction. Switching from candles to line view makes the picture much clearer and I will take a look at that during this morning's live stream. Remember, my goal isn't to convince you that you are right, wrong, or otherwise, only to help you keep your emotional bearishness in check so that you trader smarter and protect your capital. At the end of the day, we are still in a corrective market until proven otherwise so the trend is down. The key is to pay attention to what's going on so that you can notice potential reversals setting up and keep from getting caught in the wrong direction when the market does reverse.
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.