In this analysis you see bitcoins Premium Index on Bitmex, together wit Funding rate this has been on of the leading indicators of the past year. I've talked about it before in an idea of a half year ago and since then it has stayed key to price movement.
The analogy is:
When premium is negative and is coming up to a significant level for instance south of price, let it be a fib, ma/ema or support/resistance. When negative it will likely move up. The same goes vice versa when premium is possitive and approaches an important level upside it is likely to top there and reverse.
In the analysis is clearly to see this correlates very well. A key is also that we want premium to be in a direction for at least two-three days otherwise it will not be valid and we can value it as flat (neutral).
The analogy is:
When premium is negative and is coming up to a significant level for instance south of price, let it be a fib, ma/ema or support/resistance. When negative it will likely move up. The same goes vice versa when premium is possitive and approaches an important level upside it is likely to top there and reverse.
In the analysis is clearly to see this correlates very well. A key is also that we want premium to be in a direction for at least two-three days otherwise it will not be valid and we can value it as flat (neutral).
Comment:
Comment:
Scenario #1, we make a run for the 200DMA (light blue) and reject from it, this will create a fake-out of the channel and trap a lot of longs which will result in a waterfall down. IF bitcoin breaks the 200DMA and is able to close above it this setup is invalidaded.
Scenario #2, we keep respecting the channel trendline and this will likely result to a drop down to 7600-7500 again. If this happens watch for a break of 7500, if we go back down there the likelyhood of a break down increases significantly.
Scenario #2, we keep respecting the channel trendline and this will likely result to a drop down to 7600-7500 again. If this happens watch for a break of 7500, if we go back down there the likelyhood of a break down increases significantly.
Comment:
Made this schematic when we were in range, it played out well and back then it was valid to me. But times change and it is starting to more and more like a redis
Made this schematic when we were in range, it played out well and back then it was valid to me. But times change and it is starting to more and more like a redis
Comment:
Still expecting a rejection at 8.7-9.2
Premium is still rising, volume not looking good enough
Still expecting a rejection at 8.7-9.2
Premium is still rising, volume not looking good enough