Extremely violent price action indicates that we have more downside on the 4H and, on higher timeframes, that there is significant likelihood that the move from the lows was a bull trap. Whether we ultimately move to fill the gap from the short squeeze and/or form an equilibrium pattern, complete an ABC correction from the $9.76k highs, or move to new lows since all time highs, there is still more downside to come on the 4H.
A bullish three drives pattern visible on the 15min and significant hidden bullish divergence on the 4H indicate to me that we should form a higher low on the 15min and consolidate between $8.9k-$9.3k for some time (potentially up to $9.4k, but I don't believe the market is bullish enough to get there). Getting to the $9.2k-$9.4k region will likely result in significant lower time frame bearish regular and hidden momentum divergences. Breaking new lows with good volume before this would paint a very bearish picture for higher timeframes.
The amounts of Bitfinex Bitcoin longs and shorts are significantly bearish .
A bullish three drives pattern visible on the 15min and significant hidden bullish divergence on the 4H indicate to me that we should form a higher low on the 15min and consolidate between $8.9k-$9.3k for some time (potentially up to $9.4k, but I don't believe the market is bullish enough to get there). Getting to the $9.2k-$9.4k region will likely result in significant lower time frame bearish regular and hidden momentum divergences. Breaking new lows with good volume before this would paint a very bearish picture for higher timeframes.
The amounts of Bitfinex Bitcoin longs and shorts are significantly bearish .
Comment:
Price action is far more bearish than expected. I believe this to be due to lack of shorts on Bitfinex, meaning few short-term buyers (few people covering shorts), meaning very little magnitude on short-term bounces.
Comment:
The price levels that I identified in this chart (on the right, not left, chart) relevant to shorting the pullback from the $9750->$8784 move were invalidated when we quickly broke to lower lows and the $9750->$8784 movement became a $9750->$8651 movement.
The $8630 major price level was hit (though we only got to $8652 on Bitfinex, we hit it on every other major exchange). I'll be looking to the $8500, $8460, $8260, and $8100 levels if we break the $8651 lows before the $9760 highs.
The $8630 major price level was hit (though we only got to $8652 on Bitfinex, we hit it on every other major exchange). I'll be looking to the $8500, $8460, $8260, and $8100 levels if we break the $8651 lows before the $9760 highs.
Trade closed: target reached