The Battle of the Trends - Update
Please refer to post from yesterday for a broader BTC/USD look.
We saw the trend resistance line hold strong last evening and produce bearish price action most of the day, just as the charts told us might happen.
Currently, we are seeing a small head and shoulders pattern on the 30 min chart. Not only should the head and shoulders be visible in the price action but ALSO in the volume. This gives us a stronger indicator that we will see lower prices than current.
This does not mean panic, when using small time frames expect smaller impulse moves. This is just bringing some more indication to a visit to the teal trend line from September.
Keep watch for extreme volume. For the bulls, they want extreme volume... but want it tomorrow on a bounce off the trend. For the bears, they want extreme price action TODAY to hold price action BELOW the teal trend line.
Tomorrow is the expiration of the CME futures. It's unsure how drastically the futures have actually affected the market directly. Indirectly we can see a bearish sentiment of FUD as we all assume the whales crashed the price AND shorted their futures. If this was the case, I think we all feel that the same whales could be using their profits to scoop up some cheap bitcoin tomorrow.
It is possible to see another major sell of bringing us to 8k+/-.
Please refer to post from yesterday for a broader BTC/USD look.
We saw the trend resistance line hold strong last evening and produce bearish price action most of the day, just as the charts told us might happen.
Currently, we are seeing a small head and shoulders pattern on the 30 min chart. Not only should the head and shoulders be visible in the price action but ALSO in the volume. This gives us a stronger indicator that we will see lower prices than current.
This does not mean panic, when using small time frames expect smaller impulse moves. This is just bringing some more indication to a visit to the teal trend line from September.
Keep watch for extreme volume. For the bulls, they want extreme volume... but want it tomorrow on a bounce off the trend. For the bears, they want extreme price action TODAY to hold price action BELOW the teal trend line.
Tomorrow is the expiration of the CME futures. It's unsure how drastically the futures have actually affected the market directly. Indirectly we can see a bearish sentiment of FUD as we all assume the whales crashed the price AND shorted their futures. If this was the case, I think we all feel that the same whales could be using their profits to scoop up some cheap bitcoin tomorrow.
It is possible to see another major sell of bringing us to 8k+/-.
