Heads up: I bought at my target level of 600€ (watch previous post) so biased analysis here. I think there's enough hidden bullish divergences to consider a retest of highs, bears haven't manage to sink the prices and Stochastic RSI and RSI are both ready for new highs. I'm guessing we will paint a weekly doji candle... HODL my bear and watch it develop! I've plotted a new Fib overextension (dim blue, right) just in case we overshoot; those could be nice levels to short-daytrade.
much needed pinchs of salt, food for thought.
PS: the pairing against BTC looks even stronger, let's see who wins this battle... but there's enough signs there for bullishness although regular RSI is getting really near to overbought levels:
BTC dumped when the 1h chart finally showed bearish divergence. With that said, it didn't dump very hard. The bulls put the brakes on the dip pretty quickly, and we might be heading back up soon.
elpokor
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@jbeppu, I was witnessing the divergences as they were painting in the 15m chart, first in the stochastic and then in regular RSI, but c'mon... that 1,8K dump in 15 minutes and the following dump across all cryptos... all natural market behavior! :D
it's hidden bearish divergent, so do you think it will go sub 9k?
PX_
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@elpokor, So far, 9100 is being protected very fiercely, so we might not see sub 9k on BTC-USD. However, if we do get sub 9k, a very juicy bullish divergence should form on the 4h chart.
As for how "natural" or not these price movements are, I try to not let these massive pumps and dumps upset me. It's part of the crypto trading game for whales to do this, and we have to be wise enough to anticipate their moves and trade accordingly.
Who knows... someday, we may become whales, and we might have to adopt their strategies too.
elpokor
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@jbeppu, oh for sure! I'm not upset anymore, just a bit baffled that BTC takes a dump and you still feel the eartquake across all cryptos/exchanges within seconds due to bots... post-crypto-Apocalypsis lol. I don't mind dumps that trigger my "stop-loss" gains; as long as I can keep predicting where the lows are gonna bounce from D:
on that topic, I absolutely think it needs to at least wick the 9k level if its going to slingshot up anytime soon. There's no chart bullish as of now unless we paint the bullish divergence you mentioned in the 3-4h charts
PX_
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@elpokor, The bulls weren't so strong after all. The power of regular bearish divergence on the 1d chart shouldn't be underestimated.
elpokor
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@jbeppu, lol absolutely! one does not simply ignore Babypips... haha
adawhamb
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@elpokor, keep saying that to my friends who are more long term investors. Divergences are probably the more powerful tool for traders. I found out that dull divergences on RSI could be spotted on Stoch or Chaikin osc. more easily.