Moon_Rocket_Capital

Bitcoin's FOMO Bulls Break $6k

Short
COINBASE:BTCUSD   Bitcoin
PRICE ACTION
Less than 24 hours after the hack of $40M USD; and active discussion from one of the largest exchanges on whether rolling back the blockchain would be a good idea…and now the price has broken above $6000.

Some days, Technical analysis simply does not matter. Today is one of those.

The 4H chart is currently overbought @ 70.0; though volume is expanding. Price has been pushing the top of the wedge; so, has been slightly adjusted.

5m charting saw a consistent upward movement through to the test of $6000; which was immediately backed in by a push of volume that was able to break and maintain the price over the last 9 hours.

1D is overbought on RSI; and slightly divergent to the price action. Caution should be maintained at this point. And finally, the 1W is pushing into overbought as well – which could create a bearish case is price faulters out without being able to create a solid break out here. This is worth monitoring.

If you are trading this madness, good luck...

OPEN INTERESTS (BITFINEX)
Long: 1.90 Days
Short: 3.36 Days

RELATIVE STRENGTHS
  • Micro (5m): Lower Highs
  • Short Term (4h): Overbought
  • Mid Term (1D): Overbought
  • Macro (1W): Hidden Bearish

ON BALANCE VOLUME
  • Mid Term (1D): Rising
  • Macro (1W): Rising

KEY PRICE AREAS
Resistance: 6050, 6800, 7500
Support: 5750, 5493 (52W MA), 5380 (28D MA)

PREVIOUS ANALYSIS
Comment:

Margin Longs vs Shorts on Bitfinex. Worth noting is the stability of the increase in shorts compared to longs.

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