Possible reversal signal to watch - OBV rejection before takeoff
Hi All,
Thanks for checking out my analysis. In this analysis, we are focusing solely on OBV levels and the descending expanding wedge on the daily BTCUSD chart.
I believe that this pattern we saw in June 2016 will play out once again. Pay close attention to the red and blue OBV levels. You will see in July 2016, the OBV rejected the blue level (see red gavel #1.) Afterwards, when it eventually broke thru, only then did the rally take place. Take a second to see how they compare to the chart. You can see this recent OBV pattern is nothing new.
This is also in line with the descending expanding wedge needing to retest the 7000's before breaking above the important 10,000 levels. This would also complete the inverse head-and-shoulders pointed out by others.
I think we will see OBV hit the blue line and go back down during June, bringing the price down with it (see red gavel #2.) Then, it will break thru towards the red resistance line, and eventually break thru that like we saw in 2016.
If I am wrong about the OBV pullback and OBV breaks thru without retesting, wait to see if it holds. If it does, then go long no matter what.
This will be confirmed in the coming days, and will take 30 - 60 days to play out fully.
Good luck.
Thanks for checking out my analysis. In this analysis, we are focusing solely on OBV levels and the descending expanding wedge on the daily BTCUSD chart.
I believe that this pattern we saw in June 2016 will play out once again. Pay close attention to the red and blue OBV levels. You will see in July 2016, the OBV rejected the blue level (see red gavel #1.) Afterwards, when it eventually broke thru, only then did the rally take place. Take a second to see how they compare to the chart. You can see this recent OBV pattern is nothing new.
This is also in line with the descending expanding wedge needing to retest the 7000's before breaking above the important 10,000 levels. This would also complete the inverse head-and-shoulders pointed out by others.
I think we will see OBV hit the blue line and go back down during June, bringing the price down with it (see red gavel #2.) Then, it will break thru towards the red resistance line, and eventually break thru that like we saw in 2016.
If I am wrong about the OBV pullback and OBV breaks thru without retesting, wait to see if it holds. If it does, then go long no matter what.
This will be confirmed in the coming days, and will take 30 - 60 days to play out fully.
Good luck.