PRICE ACTION
The 5m chart showed a strong cross of the 50.0 RSI marker; as price bounced well from a test of the low 260 region as support. There appears to be some overhead resistance, however 275 is clearly the next key area to watch.
4H charts also confirm the importance of 275; with price currently trying to eat through the resistance. Volume is disappointing – but at least it is consistently poor on both sides. The key take away message marked in pink is that price is forming a higher low compared to RSI forming a lower low. This is a hidden bullish divergence and offers a glimpse that a rally could be just around the corner.
The 1D has battled back above the 28D moving average; and when you exclude wicks – we are creating new high ground with reasonable green bodies. Bulls should be optimistically cautious though; and the increase of margin long positions suggests that many could be getting way ahead of themselves. Worth watching is that, while RSI is strong – it could be setting up a bearish divergence. A strong boost of capital in on a break of 275 would likely break the trend; but if we remain weak volumed – this could be a short side opportunity.
Finally, the 1W recovered very strong from the 52W retest. This is now the second of the major ALT pairs to have successfully come back to retest. The green engulfing (I know, not technically engulfing…) candle directly after the pullback confirms that bulls are strongly in control now. With the next 1-2 weeks looking like the 13W will move above the 52W we are also getting confirmation that the trend is shifting.
OPEN INTERESTS (BITFINEX)
Long: 3.20 Days
Short: 0.71 Days
RELATIVE STRENGTHS
ON BALANCE VOLUME
KEY PRICE AREAS
Resistance: 275, 290, 310
Support: 257 (28D MA), 230, 216 (52W MA)
PREVIOUS ANALYSIS
The 5m chart showed a strong cross of the 50.0 RSI marker; as price bounced well from a test of the low 260 region as support. There appears to be some overhead resistance, however 275 is clearly the next key area to watch.
4H charts also confirm the importance of 275; with price currently trying to eat through the resistance. Volume is disappointing – but at least it is consistently poor on both sides. The key take away message marked in pink is that price is forming a higher low compared to RSI forming a lower low. This is a hidden bullish divergence and offers a glimpse that a rally could be just around the corner.
The 1D has battled back above the 28D moving average; and when you exclude wicks – we are creating new high ground with reasonable green bodies. Bulls should be optimistically cautious though; and the increase of margin long positions suggests that many could be getting way ahead of themselves. Worth watching is that, while RSI is strong – it could be setting up a bearish divergence. A strong boost of capital in on a break of 275 would likely break the trend; but if we remain weak volumed – this could be a short side opportunity.
Finally, the 1W recovered very strong from the 52W retest. This is now the second of the major ALT pairs to have successfully come back to retest. The green engulfing (I know, not technically engulfing…) candle directly after the pullback confirms that bulls are strongly in control now. With the next 1-2 weeks looking like the 13W will move above the 52W we are also getting confirmation that the trend is shifting.
OPEN INTERESTS (BITFINEX)
Long: 3.20 Days
Short: 0.71 Days
RELATIVE STRENGTHS
- Micro (5m): Strong
- Short Term (4h): Hidden Bullish Divergence
- Mid Term (1D): Strong
- Macro (1W): Strong
ON BALANCE VOLUME
- Mid Term (1D): Flat
- Macro (1W): Rising
KEY PRICE AREAS
Resistance: 275, 290, 310
Support: 257 (28D MA), 230, 216 (52W MA)
PREVIOUS ANALYSIS