PRICE ACTION
The 5m chart shows a striking pattern that is not usual on a lower timeframe in such a clean setup; with a head and shoulders – complete with declining volume through the head and expanding volume in the right shoulder.
Being bearish on a small timeframe, the retracement is naturally reduced so brings us nicely down to the bottom of the rising channel that is developing on the 4H chart. With $92 acting as resistance previously; it would be nice to see a retest of the support and a spring back into the bullish part of the chart. Look for RSI around 50.0 to also offer support here.
If price really pushes down hard – look for a hidden bullish to set up based on the previous higher low around $85 (RSI was 54...)
The 1D is currently teasing for a gravestone doji so a level of caution should be taking on a long position based on the 4H – though broadly we still look very strong in overall sentiment. This could be a great shopping opportunity.
Literally in the time it’s taken to right this – the move on the 5m has fully played to the target
OPEN INTERESTS (BITFINEX)
Long: 2.35 Days
Short: 0.54 Days
RELATIVE STRENGTHS
ON BALANCE VOLUME
KEY PRICE AREAS
Resistance: 100, 110, 175
Support: 92, 80 (28D MA), 70 (13W MA)
PREVIOUS ANALYSIS
The 5m chart shows a striking pattern that is not usual on a lower timeframe in such a clean setup; with a head and shoulders – complete with declining volume through the head and expanding volume in the right shoulder.
Being bearish on a small timeframe, the retracement is naturally reduced so brings us nicely down to the bottom of the rising channel that is developing on the 4H chart. With $92 acting as resistance previously; it would be nice to see a retest of the support and a spring back into the bullish part of the chart. Look for RSI around 50.0 to also offer support here.
If price really pushes down hard – look for a hidden bullish to set up based on the previous higher low around $85 (RSI was 54...)
The 1D is currently teasing for a gravestone doji so a level of caution should be taking on a long position based on the 4H – though broadly we still look very strong in overall sentiment. This could be a great shopping opportunity.
Literally in the time it’s taken to right this – the move on the 5m has fully played to the target
OPEN INTERESTS (BITFINEX)
Long: 2.35 Days
Short: 0.54 Days
RELATIVE STRENGTHS
- Micro (5m): Oversold
- Short Term (4h): Neutral
- Mid Term (1D): Bullish
- Macro (1W): Bullish
ON BALANCE VOLUME
- Mid Term (1D): Flat
- Macro (1W): Rising
KEY PRICE AREAS
Resistance: 100, 110, 175
Support: 92, 80 (28D MA), 70 (13W MA)
PREVIOUS ANALYSIS
Luckily, I had taken a snapshot previously before starting this write-up! Here is what the analysis was originally based on...