Good morning, traders. I see a lot of traders are very disturbed by this small move down and, as a result, reversing their calls this morning. Yet it's exactly what I said was likely to happen. With the break out of the 4H TR being the SOS, the odds were high to return to the TR and test it as support to complete the BUEC/LPS before printing another, higher, SOS. I have mentioned numerous times that traders should not be paying attention to the short TFs right now. You should be zooming out to the 4H and larger TFs if you want to see what's really going on. There's too much noise in this area, for most traders, to remain zoomed in. You can also likely identify the local 30 minute/1H TR as reaccumulation with a spring which usually appears weak (hence the spring). I'll be discussing this in this morning's video update.
I had some requests to chart on BitMex rather than the usual Bitstamp, so make sure you are aware that Mex is the chart this time around. The 4H chart shows price's return to the TR's resistance to test it as support. We can see the 21 EMA continuing to provide support, as well as the HVN. The 4H RSI bounced off its own ascending support and Stoch RSI just dipped into oversold. Yes, there is a possible tweezer top pattern printing on the daily, but we still have more than 1/3 of the daily candle remaining before close so it's much too early to give it any significance. With the move down overnight, I'd watch the shorter TFs to see if price is gearing up to retrace that move. The 1H and lower TFs are suggesting such a retracement at this time with the 2H Stoch RSI recently bouncing off the bottom of oversold and nearing a bullish cross. Price breaking back above the top of the 4H TR's resistance area/R1 pivot at $5474 would be a bullish signal, whereas dropping below the 4H pivot at $5210 would require traders to take another look at price action.
Bitfinex Shorts are printing bearish divergence on the 4H TF while the Longs are well into oversold on that same TF. A large retracement to the downside should see Shorts piling on and Longs dropping off, so this current situation seems to be suggesting that we will see price rising rather than dropping in the near term. As such, my upper targets that I have been discussing for a while now remain in play.
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
I had some requests to chart on BitMex rather than the usual Bitstamp, so make sure you are aware that Mex is the chart this time around. The 4H chart shows price's return to the TR's resistance to test it as support. We can see the 21 EMA continuing to provide support, as well as the HVN. The 4H RSI bounced off its own ascending support and Stoch RSI just dipped into oversold. Yes, there is a possible tweezer top pattern printing on the daily, but we still have more than 1/3 of the daily candle remaining before close so it's much too early to give it any significance. With the move down overnight, I'd watch the shorter TFs to see if price is gearing up to retrace that move. The 1H and lower TFs are suggesting such a retracement at this time with the 2H Stoch RSI recently bouncing off the bottom of oversold and nearing a bullish cross. Price breaking back above the top of the 4H TR's resistance area/R1 pivot at $5474 would be a bullish signal, whereas dropping below the 4H pivot at $5210 would require traders to take another look at price action.
Bitfinex Shorts are printing bearish divergence on the 4H TF while the Longs are well into oversold on that same TF. A large retracement to the downside should see Shorts piling on and Longs dropping off, so this current situation seems to be suggesting that we will see price rising rather than dropping in the near term. As such, my upper targets that I have been discussing for a while now remain in play.
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
