PRICE ACTION
Actions that break from trend are always worth paying attention to...
The 4H chart has been showing a divergence in RSI action compared to price; as price has been forming lower highs against a flat (actually – slightly up) RSI peak. As price as come back up to test the trendline again; RSI has failed to touch the top of its trend. This suggests that there is some form of weakness in the strength of the market.
Something still needs to happen in order for a move to occur, as most of the volume is missing from the market since the start of the week.
Playing tight and strategic with the $85 as the SL; you could potentially squeeze out a 2x RR short play here – however the key will be when volume shows up; and on which side of the fence it arrives.
52W MA @ $67 is still the target for a retest.
OPEN INTERESTS (BITFINEX)
Long: 1.38 Days
Short: 0.63 Days
RELATIVE STRENGTHS
ON BALANCE VOLUME
KEY PRICE AREAS
Resistance: 100, 115, 145
Support: 80, 74 (28D MA), 67 (52W MA)
PREVIOUS ANALYSIS
Actions that break from trend are always worth paying attention to...
The 4H chart has been showing a divergence in RSI action compared to price; as price has been forming lower highs against a flat (actually – slightly up) RSI peak. As price as come back up to test the trendline again; RSI has failed to touch the top of its trend. This suggests that there is some form of weakness in the strength of the market.
Something still needs to happen in order for a move to occur, as most of the volume is missing from the market since the start of the week.
Playing tight and strategic with the $85 as the SL; you could potentially squeeze out a 2x RR short play here – however the key will be when volume shows up; and on which side of the fence it arrives.
52W MA @ $67 is still the target for a retest.
OPEN INTERESTS (BITFINEX)
Long: 1.38 Days
Short: 0.63 Days
RELATIVE STRENGTHS
- Micro (5m): Strong
- Short Term (4h): Hidden Bearish
- Mid Term (1D): Weakening
- Macro (1W): Weakening
ON BALANCE VOLUME
- Mid Term (1D): Weakening
- Macro (1W): Weakening
KEY PRICE AREAS
Resistance: 100, 115, 145
Support: 80, 74 (28D MA), 67 (52W MA)
PREVIOUS ANALYSIS