Here's a quick look at the 8 hr. BTC chart. The bearish divergence on the RSI suggests that the trend is losing momentum, and a downward move could be expected. Additionally, the low volume indicates that a substantial movement could occur at any moment. With the bearish divergence on the RSI and the low volume, it's highly likely that a move to the downside could happen soon.
It's important to consider the unfilled CME- and Fair value gaps located below the current price. Typically, these gaps are eventually filled, so expecting a price retracement to those levels is reasonable. However, it's worth noting that filling such gaps could take a while, although they are usually filled relatively quickly.
------------------------------------------- What's a Fair Value Gap?: A fair value gap is the difference between a financial instrument's theoretical value and market value, such as a derivative or security. It can indicate a misprizing opportunity for traders to profit by buying or selling at the misprized level. In other words, there is a gap in the price in which some open orders still need to be filled. The price will return to fill the orders.
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RSI bearish divergence on the Daily TF:
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A bearish divergence on the Relative Strength Index (RSI) occurs when the price of an asset is making higher highs while the RSI is making lower highs. This indicates that the momentum of the price is weakening and that a potential trend reversal to the downside could occur. The bearish divergence can be a useful technical analysis tool for traders to identify potential trend changes in the market. It's worth noting that a bearish divergence is not always a guarantee of a downward move, but it can be a useful indication for traders to keep an eye on the market and act accordingly.
Not looking good for shorts anymore, they are about to get squeezed, by the look of it. It seems there may be no shorting under 30k anymore, bulls are on coke again.
MBM_Crypto
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@vitaly-t let’s see how it plays out
averkie_skila
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There is, of course, a danger that it will run upwards like a bull flag, but that does not invalidate the reset. The long is extremely risky.
MBM_Crypto
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@averkie_skila, Yes! I wouldn't go long here. There's a lot of resistance at 29k, and the trend isn't showing any strength.
bobbycrypto05
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You've been bearish for a while now. Will be right eventually I guess, it's just a matter of not getting liquidated.
MBM_Crypto
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@bobbycrypto05, I see no reason to become bullish at this time. I continue to consider this a bear market rally. This increase also seems to be quite manipulative. The volume decreased drastically when the price hit the upper resistance level of 29,000 and has remained low ever since. In addition, the bearish divergence on the RSI indicates a weakening trend. Not to mention the Fair value- and CME deficit below present prices.
bobbycrypto05
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@MJI786, Agreed I think the risk is slightly higher for longs atm although it does seem the market is undecided at the moment. Wait for next week and see it unfold. Thanks for the reply, love you posts.