Hello Traders,
Looking at daily chart for Bitcoin, we are starting to see this rising wedge formation. In classical technical analysis, this is a bearish pattern and we may see a bearish continuation.
Despite this bearish pattern, the number of long positions have been increasing in both Bitmex and Bitfinex in past 12 hours.
As time of publishing,
Bitmex: Long (59%) vs short (41%)
Bitfinex: Long (53%) vs short (47%)
So it seems like bulls are in the upper hand for now. However, what concerns me the most is the fact that some of the major alt coin prices are not following Bitcoin bullish sentiment:
XRP: attempted breakout this morning, but it was rejected
LTC: stuck at $60 in binance
ETH: still below $140 in biance
EOS: stuck around $3.7
BNB: still $15
So I am actually not sure how I need to deal with this situation, as there are a lot of mixed signals in the cryptocurrency space. If you draw extension of this rising wedge, the intersection meets $4200, where we see very VERY strong resistance. I shorted majority of my position at $4000 and I am not planning to get back in unless I see some clear signals.
Happy trading!
Looking at daily chart for Bitcoin, we are starting to see this rising wedge formation. In classical technical analysis, this is a bearish pattern and we may see a bearish continuation.
Despite this bearish pattern, the number of long positions have been increasing in both Bitmex and Bitfinex in past 12 hours.
As time of publishing,
Bitmex: Long (59%) vs short (41%)
Bitfinex: Long (53%) vs short (47%)
So it seems like bulls are in the upper hand for now. However, what concerns me the most is the fact that some of the major alt coin prices are not following Bitcoin bullish sentiment:
XRP: attempted breakout this morning, but it was rejected
LTC: stuck at $60 in binance
ETH: still below $140 in biance
EOS: stuck around $3.7
BNB: still $15
So I am actually not sure how I need to deal with this situation, as there are a lot of mixed signals in the cryptocurrency space. If you draw extension of this rising wedge, the intersection meets $4200, where we see very VERY strong resistance. I shorted majority of my position at $4000 and I am not planning to get back in unless I see some clear signals.
Happy trading!
Comment:
There it is! A heinous, savage red candlestick that shows you $4200 is not even in the hand for bulls.
Comment:
This rising wedge is very similar to the one we had on Feb 11th. We should test the bottom of the rising wedge trendline to confirm that is the resistance. This overlap with $4000 psychological resistance, it seems to be natural. If we see a rejection, then Bitcoin needs to test $3900, followed by $3650.
Comment:
wrong one. That one is for Ripple.
Comment:
I am starting to re-evaluating the current situation. I felt the dump today was not strong enough, and there is no significant bearish follow through. The number of long is still very high in both Bitmex and Bitfinex.
As a matter of fact, Bitcoin is currently sitting above weekly MA20 for the first time this year, and this fact can't be ignored that easily. I also see inverse head and shoulders pattern now, and perhaps bulls are expecting bullish breakout. If bulls can capitalize this, I am expecting it go go at least $4400-$4500 and find support around $4200.
As a matter of fact, Bitcoin is currently sitting above weekly MA20 for the first time this year, and this fact can't be ignored that easily. I also see inverse head and shoulders pattern now, and perhaps bulls are expecting bullish breakout. If bulls can capitalize this, I am expecting it go go at least $4400-$4500 and find support around $4200.
