We've seen strong selling on BTC on these last legs down with very little buy-side positioning.
When you close a long(buy) position it essentially turns into a short(sell), and vice versa
When BTC finally found some buyer interest at 9.3k we saw no followthrough buyside volume and sold off.
This to me, is a sign of profit-taking, rather than longs being positioned.
If there was institutional interest here to turn the market and run it back up again, then you wouldn't expect to see heavy selling followed by very little buy-side positioning.
The low volume attempts at the levels we've been trading between would suggest that the market is struggling to find liquidity.
In a long term trend, books tend to get stacked. Once the books get stacked too far to one side, there's no one left to take the other side of the trade because everyone who was going to position, has.
So to find liquidity, the market needs to turn. The market can stir up liquidity in a few ways... One of them is what they've been doing - Putting in big shift bars in order to get a fast change in sentiment. Essentially, liquidity comes from breaking levels. If they do run to the long side, unless we see substantial buyside volume, then i'd expect the move up to be a liquidity hunt followed by a selloff.
We've also got hidden bearish divergence.
Hidden bearish divergence can be identified by using your RSI. When your RSI(White TA) makes higher highs while price action makes lower highs, this is what's known as hidden bearish divergence.
Hidden bearish divergence can be used as confluence and is generally found as a bearish move retraces before continuing a selloff.
Because of the negative structure, heavy distribution(selling) and lack of buy-side volume, I have a longterm bearish outlook.
When you close a long(buy) position it essentially turns into a short(sell), and vice versa
When BTC finally found some buyer interest at 9.3k we saw no followthrough buyside volume and sold off.
This to me, is a sign of profit-taking, rather than longs being positioned.
If there was institutional interest here to turn the market and run it back up again, then you wouldn't expect to see heavy selling followed by very little buy-side positioning.
The low volume attempts at the levels we've been trading between would suggest that the market is struggling to find liquidity.
In a long term trend, books tend to get stacked. Once the books get stacked too far to one side, there's no one left to take the other side of the trade because everyone who was going to position, has.
So to find liquidity, the market needs to turn. The market can stir up liquidity in a few ways... One of them is what they've been doing - Putting in big shift bars in order to get a fast change in sentiment. Essentially, liquidity comes from breaking levels. If they do run to the long side, unless we see substantial buyside volume, then i'd expect the move up to be a liquidity hunt followed by a selloff.
We've also got hidden bearish divergence.
Hidden bearish divergence can be identified by using your RSI. When your RSI(White TA) makes higher highs while price action makes lower highs, this is what's known as hidden bearish divergence.
Hidden bearish divergence can be used as confluence and is generally found as a bearish move retraces before continuing a selloff.
Because of the negative structure, heavy distribution(selling) and lack of buy-side volume, I have a longterm bearish outlook.