Major bearish RSI divergence Plus possible H&S Bitcoin

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
The failure to form a new higher high is just one of many warning signs that Bitcoin bulls are running out of steam, and the bears are gaining strength. While the channel is still very well intact, this formation indicates that the support level of the channel is weakening and I would probably consider it a bull trap. On a weekly chart this looming correction is even more obvious. A healthy correction would be to test the previous high which is ~$1300 and this also happens to be just about the level of the 200 day MA which as anyone who has any real technical experience will tell you is a very important support level in bull markets and must be testest ever so often to maintain the primary trend and pop bubbles. Right now BTC has found support on the 50 day MA but failed to bounce off it with any real buying pressure. Not to mention, there is a MAJOR BEARISH Divergence showing in the RSI . A correction is needed and looming.

Good Luck I've been short from 2500 but this is just as good. If a HH forms obv close a short but I seriously doubt that.

Now this is interesting
Comment: I hope you all are still short and did not fall for that bull trap that I warned you about. This is the next leg down, imo. The channel has officially broke ( wait for the close if you wish to be conservative) and the H&S is just waiting on the daily close to be formed.

I am still short and I even added on to my short position on the last bull trap move off of the bottom support level of the channel.

Remember to stay strong and wait until the bottom forms.
Comment: The 100 Day MA is trying to act as support here. Ringing the cash register is never a bad thing, still looking for 1850 or the 200 day ma. Maybe even the weekly MAs!
Comment: Support was found at the 50% Fibonacci level and now it is testing the .618 trend extension level. If the bulls fail to break the .618 level you can look to get short to the retest of the longer term 50% level and then the .618 level would be your tp. We will see what forms.
Interesting, you can see a wedge triangle also forming up, C patterns say BTC will have a bullish movement.
I agree, and this is coinciding with a H&S on the US Nasdaq. Notice bitcoin and ETH have been trading in tandem with the Nasdaq the last 2 weeks. Almost 1.0 correlation. I believe Nasdaq will fall through the bottom next week as will all cryptos.
coltsrule7 josephtse
@josephtse, Wow..... Your right... This is definitely not a good sign ... hmmm
One tiny move back to 2560 and I might consider shorting for the first time in my life LOL
Crypto-King Kriojenic
@Kriojenic, Same here where can we do shorting, I would also like to give it a shot it seems we would make good money
ive been shorting from 2560.. getting scary cause i put x5 my capital
coltsrule7 choseongmin93
@choseongmin93, Yea But hang in there! I would really hate to see you close it at like 2300, when it really should drop below at least 2000 and probably hit 1850 maybe, hopefully, 1350! You would be rolling in the dough son! Anyway, I have kicked myself for closing too early many times when I first started trading. The thing that separates the pros from the amateurs is that the pros know when to let their profits ride. Best of Luck!
Crypto-King coltsrule7
@coltsrule7, Hi I am new and trying to learn short and long can be done on which exchange ? I am using Bittrex and it seems this is not possible on Bittrex.
choseongmin93 coltsrule7
@coltsrule7, do you still think that bitcoin market is bearish?
josephtse choseongmin93
@choseongmin93, Great move! 1st TP is at 2000!!!! Be careful and deleverage as you hit each TP!!! Maybe even start to lever down now to 2x!
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