PRICE ACTION
Let’s start with a throwback to the analysis posted 9th May:
“A break of $200 will likely set up a rally through to the 52W MA @ $250”
After breaking through the $200 resistance, price settled and consolidated for about a day before rocketing upward (currently up 17.5%) – playing exceptionally well to the plan. But will it maintain?
The 5m chart is showing a hidden bullish divergence against RSI; suggesting that the short timewave impulses are not over yet. The watchpoint here is that volume is reducing, so once a lower high formation prints – it may be best to jump off the ride.
The 4H and 1D are both breaking into overbought territory; however, when compared to some other charts they still have some overhead room for a further run.
The big watch out here is the 1W chart, where we see the 52W Moving average has dropped slightly and is now at $242; which will likely cause some price action stagnation – even if it is just temporary. Going long here is danger with a 20% drop back down to the support – and resistance at $242 – $275.
If you didn’t take a long position on the break of $200; your best course of action is patience and look to enter on either a pull back; or on the break of the 52W MA.
OPEN INTERESTS (BITFINEX)
Long: 2.23 Days
Short: 0.42 Days
RELATIVE STRENGTHS
ON BALANCE VOLUME
KEY PRICE AREAS
Resistance: 242 (52W MA), 250, 275
Support: 200, 176 (28D MA), 161 (13W MA)
PREVIOUS ANALYSIS
Let’s start with a throwback to the analysis posted 9th May:
“A break of $200 will likely set up a rally through to the 52W MA @ $250”
After breaking through the $200 resistance, price settled and consolidated for about a day before rocketing upward (currently up 17.5%) – playing exceptionally well to the plan. But will it maintain?
The 5m chart is showing a hidden bullish divergence against RSI; suggesting that the short timewave impulses are not over yet. The watchpoint here is that volume is reducing, so once a lower high formation prints – it may be best to jump off the ride.
The 4H and 1D are both breaking into overbought territory; however, when compared to some other charts they still have some overhead room for a further run.
The big watch out here is the 1W chart, where we see the 52W Moving average has dropped slightly and is now at $242; which will likely cause some price action stagnation – even if it is just temporary. Going long here is danger with a 20% drop back down to the support – and resistance at $242 – $275.
If you didn’t take a long position on the break of $200; your best course of action is patience and look to enter on either a pull back; or on the break of the 52W MA.
OPEN INTERESTS (BITFINEX)
Long: 2.23 Days
Short: 0.42 Days
RELATIVE STRENGTHS
- Micro (5m): Hidden Bullish
- Short Term (4h): Overbought
- Mid Term (1D): Overbought
- Macro (1W): Bullish
ON BALANCE VOLUME
- Mid Term (1D): Rising
- Macro (1W): Flat
KEY PRICE AREAS
Resistance: 242 (52W MA), 250, 275
Support: 200, 176 (28D MA), 161 (13W MA)
PREVIOUS ANALYSIS
Comment:
Price fell back inside the channel; but the 5m chart is maintaining it's pattern. Holding unless this pattern breaks down.
52W didn't even phase the price. 1D RSI is now pushing towards 90+ and 4H is well overbought too.
Look for an exit when the price falls back into the rising channel.