Looks like a bearish ascending triangle coming to an end in the matter of days, or even hours .... the question is which way.
Yesterday's spike looks like manipulation ... was it a short squeeze stop hunt / bull trap? Right after it happened, I was sure it was because Bitfiniex's total shorts was showing a bit high of a number, so I assumed exchanged needed to get rid of them before any sustained push lower. You can see on the chart the total shorts were effectively pushed and trending down, while Bitcoin price was moving up in the triangle ... So I was thinking we had a blast off top as shorts got screwed and we would continue the down trend. But here we are, testing top resistance of the triangle again.
What it looks like right now ... Stoch RSI really looks like it wants to rollover ....the price has not closed above the top line of the triangle yet ... so I am not a buyer here. I dont short, but if anyone out there does, this would be very good risk/reward to give it a shot. Stop loss above yesterday's spike in case this runs away.
For long plays ... a break above the stop hunt spike I think is important to watch for. If that happens, I think it would open up a short term buying opportunity ... limit buys set for a retest of the top of the triangle, around $7020, for a move up to $8000 area.
A break below the bottom triangle trend line and I think we fall hard. I measured out the flagpole of the triangle on the chart and if we go by percentage move, we get a profit target of around $3000, which would be a nice double bottom of the low back in November.
Yesterday's spike looks like manipulation ... was it a short squeeze stop hunt / bull trap? Right after it happened, I was sure it was because Bitfiniex's total shorts was showing a bit high of a number, so I assumed exchanged needed to get rid of them before any sustained push lower. You can see on the chart the total shorts were effectively pushed and trending down, while Bitcoin price was moving up in the triangle ... So I was thinking we had a blast off top as shorts got screwed and we would continue the down trend. But here we are, testing top resistance of the triangle again.
What it looks like right now ... Stoch RSI really looks like it wants to rollover ....the price has not closed above the top line of the triangle yet ... so I am not a buyer here. I dont short, but if anyone out there does, this would be very good risk/reward to give it a shot. Stop loss above yesterday's spike in case this runs away.
For long plays ... a break above the stop hunt spike I think is important to watch for. If that happens, I think it would open up a short term buying opportunity ... limit buys set for a retest of the top of the triangle, around $7020, for a move up to $8000 area.
A break below the bottom triangle trend line and I think we fall hard. I measured out the flagpole of the triangle on the chart and if we go by percentage move, we get a profit target of around $3000, which would be a nice double bottom of the low back in November.