The falling wedge is a bullish pattern, plus the 4h bullish divergence. There is a high probability the wedge will break up, this is a high reward low risk trading setup, we can still drop to the bottom of the wedge and then spike up, or we simply spike up from here. The only concern for the bull is that the long/short ratio is high. However, with such high RR ratio(around 3-4), its worth to take a long position here, or around 3350-3380.
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the pump is not convincing, volume is too low. we will probably go back to 3350-3380
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eth looks so bearish, and ethlong/ethshort ratio is insanely high, which confirms that a drop to the downside is imminent before we can have a decent bounce.
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As expected, eth big drop...
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bounced from the lower side of the wedge, 2 out of 4 orders filled at the wick, stop is below 3300, this is a swing trade setup, expect a bounce at least to 3800.
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the only reason eth is still holding at the weak support is because btc is holding. Looking at the week performance of eth, it might drag down btc to new low if btc is not able to hold here, the next support is around 3200. Moved up my stop 3380+ to prevent any losses.
Trade closed manually:
Took profit at 3434. ETH looks too bearish, its likely preparing for another deep dive that drags btc down again. There are 200k eth margin long opened on bitfinex, they are forced to close or liquidate once eth break down 100. Thus, we will probably break this support 3350-3380, next support 3200 we might see a week bounce, new target is 2800, based on fib extension.
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There are 200k eth margin long opened above 140+ on bitfinex, (retailer fomo buying the top in the last impulse wave )