Good morning traders. Last night saw price drop almost $700 (or just under 10%) which has traders scared of further downward movement. However, looking at the 15 minute chart, we can see that volume was lackluster at best. In other words, we should've seen a lot greater volume on that drop if supply was in control. Instead, we see supply volume has continued to contract throughout this entire consolidation/sideways movement while demand volume has expanded. Furthermore, the demand volume that showed up at the bottom of the drop is significant (2x what the supply volume was), indicating that demand is in control.
As we can see, bullish divergence printed on RSI recently so we should expect price to head up rather than down. But this is a short TF, so I will be watching for confirmation in the form of price moving above the descending wedge's resistance. This will also take price above the 21 EMA and back above the S1 pivot. A close above the pivot at $8115 is bullish and would have price above the HVN once again. Overall, price has just continued to consolidate around the monthly pivot denoted by the green horizontal line while printing higher lows and highs.
Many people have asked about the huge drop in Bitfinex shorts but lack of volume on the exchange. The most likely answer is that the individual settled their position, or "claimed" it as it is known on Bitfinex (support.bitfinex.com...o-claim-my-position-). From the FAQ: ....Claiming a position is essentially converting from a margin trade into an exchange trade; closing the position by buying it yourself and settling your funding costs to the lender. Because of this, there is no trade activity on the order book. Claiming your position does not involve trading." This is a bullish signal to me as it suggests that the individual is looking for price to go higher, so I am expecting another move to the upside.
A close above the ascending triangle that appears to be printing would create a target of ~$9240 based on the height of the triangle. This gets price to my original target which is a good sign. However, if price does reach this point that doesn't mean it has to stop there, just that it is the target based on this pattern. Taking the height of the possible flagpole leading up to it would give us a target of ~$9900. This looks more possible based on Binance's BTC/USDT, for example, because it appears that a symmetrical triangle/pennant is printing there, so it's good to keep in mind. Either way, it's never a bad thing to lock in profit, especially in volatile areas like we are now. As an aside, the drop overnight has found support so far on the 4H 21 EMA and R1 pivot. This, again, would suggest that price is headed higher rather than lower for now. As always, risk management and confirmations should be strongly adhered to if traders intend to enter, whether long or short.
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.
As we can see, bullish divergence printed on RSI recently so we should expect price to head up rather than down. But this is a short TF, so I will be watching for confirmation in the form of price moving above the descending wedge's resistance. This will also take price above the 21 EMA and back above the S1 pivot. A close above the pivot at $8115 is bullish and would have price above the HVN once again. Overall, price has just continued to consolidate around the monthly pivot denoted by the green horizontal line while printing higher lows and highs.
Many people have asked about the huge drop in Bitfinex shorts but lack of volume on the exchange. The most likely answer is that the individual settled their position, or "claimed" it as it is known on Bitfinex (support.bitfinex.com...o-claim-my-position-). From the FAQ: ....Claiming a position is essentially converting from a margin trade into an exchange trade; closing the position by buying it yourself and settling your funding costs to the lender. Because of this, there is no trade activity on the order book. Claiming your position does not involve trading." This is a bullish signal to me as it suggests that the individual is looking for price to go higher, so I am expecting another move to the upside.
A close above the ascending triangle that appears to be printing would create a target of ~$9240 based on the height of the triangle. This gets price to my original target which is a good sign. However, if price does reach this point that doesn't mean it has to stop there, just that it is the target based on this pattern. Taking the height of the possible flagpole leading up to it would give us a target of ~$9900. This looks more possible based on Binance's BTC/USDT, for example, because it appears that a symmetrical triangle/pennant is printing there, so it's good to keep in mind. Either way, it's never a bad thing to lock in profit, especially in volatile areas like we are now. As an aside, the drop overnight has found support so far on the 4H 21 EMA and R1 pivot. This, again, would suggest that price is headed higher rather than lower for now. As always, risk management and confirmations should be strongly adhered to if traders intend to enter, whether long or short.
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.
Comment:
There is also the possibility that this could be a double top printing (purple arcs denoting the two peaks), but that won't be confirmed until price closes below the $7730 swing low between the two possible tops. Personally, I'm not feeling the possible double top at the moment due to the large swing just prior to the first peak. Furthermore, we have continued printing higher lows toward the $8300/$8400 resistance. So, it bears watching for now, but I don't really think it will play out.