PRICE ACTION The 5m chart shows a nice price action of the sentiment shift from bullish to bearish; with the action leading into 7-May showing higher highs/lows; followed by about 30 hours of consistent lower highs/lows. Volume on each more up/down has been catalysed by spikes in volume; with the following periods being low volume consolidation. Nothing organic in this volume profile...
Looking over the 4H chart; we can see that the highs have been accelerating and pushing the pattern into a developing broadening wedge. Volume has marginally been increasing (nothing of any real excitement though); so, the bullish lean would remain in place until we see another impulse up that has lower volume parameters. RSI is filling a slightly rising channel; which should give short term bull traders some possible upside potential as RSI tests the 50.0 midpoint.
The 1D chart also offers a level of bullish potential if the 28D MA can act as support. It has been weak for the back half of April – so this is far from a sure thing. The last 2 days have wicked above the descending trend though; so, a nice strong close could add to the bullish sentiment of the 4H chart.
Finally, the 1W chart continues to struggle against the resistance that is being generated around the $200 area; although the 13W MA is reasonably close at $150.
Overall, not the best time to enter a long position; but short term traders should be able to see some opportunity here.
OPEN INTERESTS (BITFINEX) Long: 3.66 Days Short: 1.11 Days