BITMEX:XBTUSD   Bitcoin / US Dollar Perpetual Inverse Swap Contract
Good morning, traders. The descending broadening wedge resistance I discussed yesterday finally gave way over night and price is moving up as expected with a target of $12430 based on the height of the wedge . Price bounced off the 4H pivot , just above the 61.8% retracement of the move up from the July 2nd swing low. The big bullish indicator at the moment, however, is the hidden bullish divergence printing on the daily and price following through to the upside should have RSI above its resistance. That hidden bull div signals continuation of the bullish trend . Because it's on the daily, it is significant and should not be ignored. If you are tempted to short, make sure you understand that you will likely be shorting against this indicator. While nothing is ever guaranteed, I would wait for some kind of confirmation before shorting or continuing a short, the latter depending on where that short was entered.

As mentioned previously, we could be watching a large pennant printing, of which this would be the B wave of the C wave of an ABCDE triangle. If so, then we should expect a reversal around that mid-$12K target. But, again, the hidden bullish divergence on the daily seems to suggest price will continue up. If so, then it's possible that the recent move up from the July 2nd swing low was a leading diagonal as I discussed a couple of days ago and price will continue heading up rather than print that pennant .

Price on the 4H is currently finding resistance just under the 21 EMA and above the top of the local TR . For those interested in the TD Sequential indicator, the swing low 4H candle was a TD 9. The 1H has price above its 21 EMA but Stoch RSI is running hot. But that is just a warning that price could potentially have a bit of a pullback, not a guarantee. Currently price is looking pretty bullish as its drop back into the TR during the last candle was quickly met with demand resulting in a long lower wick off the 21 EMA . If price happens to pullback, I would be looking for it to find support around $11500/$11550. Traders should be wary of supply at the $12090-$12200 level which, especially if price continues up from its current spot without a pullback, should likely result in a pullback toward this current price level.

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Bitcoin bull run fractals on daily showing bullish
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I agree with your analysis except I have my upper purple line set to 11841, which was strong resistance in Feb & March 2018. If it gets through that, then we are more likely gone bullish for the short term. If it can't break through 11841 then we either bounce around between the 2 purple lines, or it falls through the bottom purple support line and we have to bend over and grab our vomit bags 'cause we're going lower faster. LOL
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@BDG, My purples lines denote the Wyckoffian TR which, in accumulation, is from the SC to the AR. That's why yours is different. Not wrong, just different (emphasizing this for anyone else reading this response) and still valid.
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BDG TexasWestCapital
@TexasWestCapital, thanks for the explanation. I couldn't read the gray letters you have on the chart. Maybe use black text and make it slightly larger next time? Keep up the good work.
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