Good morning, traders. We have made it to Friday once more and, as always, that means liquidity begins drying up for the weekend. Gold is nearing a bullish breakout and the DXY is struggling to remain afloat. This suggests to me that we are more likely to see Bitcoin heading up than down. DJI is a few hundred dollars away from filling the gap left in January of this year and printing a new ATH. The VIX is very low and continues to drop. BTCUSD longs gapped up earlier this morning, as did shorts. Weekly OBV looks amazing as it continues to rise in spite of the drop in price suggesting that retail is selling into the waiting smart money and therefore price should continue rising. Weekly StochRSI is printing a symmetrical triangle and a bullish cross. RSI is also nearing a bullish cross on the same TF. However, there is no hurry in moving up and we could see price take its time working its way through the resistance over the next few weeks.
We saw price drop earlier this morning and since then create a possible bear flag. Price has been moving sideways toward the support of that flag, so the expectation is to see it drop through. This would give us a target of $6235-$6270, depending when price breaches that support, which would bring price right back toward the bottom of the larger TR. Price doesn't have to fall through the bottom of the possible flag, however, and a move toward the top of the flag from price's current position would likely indicate bullish follow through upward. The orange zone shows us the most recent smaller TF TR, and we still have our target of up to $6720 based on the descending broadening wedge that price recently broke out of.
In terms of Wyckoff, it appears that price has been in accumulation since September 5th and should be nearing an exit pretty soon. This is the same thing we saw, in the same area, at the beginning of August as well as end of June/beginning of July. The only difference is that in each subsequent period we have seen the length of accumulation and the size of the TR shorten, suggesting that there is less loose asset out there for C.O. to accumulate and that we may be nearing a bull run.
We could potentially be halfway through a very short diamond pattern on the 12H chart. After the run up, we now have two doji candles, the most recent one with longer upper and lower wicks than the previous one creating the possible mid-area of the diamond. To be honest, I'm not really feeling it at this time but I will be sure to discuss it, as well as everything mentioned above, in greater detail during this morning's live stream.
We saw price drop earlier this morning and since then create a possible bear flag. Price has been moving sideways toward the support of that flag, so the expectation is to see it drop through. This would give us a target of $6235-$6270, depending when price breaches that support, which would bring price right back toward the bottom of the larger TR. Price doesn't have to fall through the bottom of the possible flag, however, and a move toward the top of the flag from price's current position would likely indicate bullish follow through upward. The orange zone shows us the most recent smaller TF TR, and we still have our target of up to $6720 based on the descending broadening wedge that price recently broke out of.
In terms of Wyckoff, it appears that price has been in accumulation since September 5th and should be nearing an exit pretty soon. This is the same thing we saw, in the same area, at the beginning of August as well as end of June/beginning of July. The only difference is that in each subsequent period we have seen the length of accumulation and the size of the TR shorten, suggesting that there is less loose asset out there for C.O. to accumulate and that we may be nearing a bull run.
We could potentially be halfway through a very short diamond pattern on the 12H chart. After the run up, we now have two doji candles, the most recent one with longer upper and lower wicks than the previous one creating the possible mid-area of the diamond. To be honest, I'm not really feeling it at this time but I will be sure to discuss it, as well as everything mentioned above, in greater detail during this morning's live stream.