Since the huge 100%+ rise on the 2nd Feb it has been swinging between momentum cycles (15% - 45% swings), but now we've reached a stage where the bulls and bears can't land a knockout blow. This means there's a huge amount of pressure building up in the background, and one side will have to give. The side that gives is likely to surrender completely for a short period, leading to a large and violent price move in their direction.
At this stage it's looking a little (60/40), but these situations can go either way.
I'd be looking to set a conditional buy in order above the previous high shadow (so something in the vicinity of 0.04700 - 0.047800 depending on your risk levels) for a long entry, and the reverse for a short. If you want to wait and try and catch the bottom (difficult in a breakout), remember to not move until either direction has broken it's first level of . Otherwise you could get trapped.
I generally always like to set a fairly tight stop loss with these as well. The price tends to move up or down so quickly that trailing shadows aren't a huge problem, and you also want to protect yourself given the speed in which these can occur.
I'll update the Idea if the breakout occurs.
Cheers and good luck,
We now need VZO to follow suit (indicating bullish volume increase), and then price.
I've indicated critical levels for both bullish and bearish behaviour, and I won't be entering either a long or short trade until these levels are reached.
Also, it would be worth looking for a short-term upward swing for DGD over the next few hours. Momentum has hit the bullish momentum line, and prices have been mirroring momentum swings closely for the last 3-4 cycles.
So the squeeze happened and the bears won. Not overly surprising given the crypto market!
The one really strange thing is how level the VZO has stayed, indicating that there's still a fair bit of bullish activity in the market. Not suggesting it's going to rise soon, but I've set some alerts and I'll keep an eye on it.
I'll consider this analysis closed unless something very interesting happens!