Bitcoin has made a solid recovery since the bounce off a major trendline at $5,300 and has since broken through all major resistances and appears to be on the verge of a breakout to a new all time high. News that Amazon will be accepting Bitcoin is evidentally coming on their conference call in about 6 hours, and so we now have a new group of people who have assembled to perform prayer to the moon as we progress.
However, zooming out and taking a look at the 12h, there are major major bearish divergences. We have a H&S forming on the 12H, just as we did at the decline of the $4900 ATH. Also worth noting is if you trendline from the previous large dump through the most recent smaller dump on both graphs, they both dip below and then come up and retest the intersection of the shoulder line and that trendline. Will Bitcoin collapse and correct as it did before?
Well, you tell me. Take a look at the EMAs (Willy21 blue line is very close to traditional RSI) and the Stoch on the longer time frame. We are in a situation where we are supposed to have the momentum to smash through major resistance with parabolic volume, yet we are very over extended and momentum indicator shows we are out of fuel.
You know the saying "Buy the rumor, sell the news"?
What's happening right now is merely this cycle's manifestation of China FUD.
I do expect a push into 6k-6.3k on this before it reverses and dumps. Be careful you don't get stuck with bags and be careful you don't short the wrong situation.
However, zooming out and taking a look at the 12h, there are major major bearish divergences. We have a H&S forming on the 12H, just as we did at the decline of the $4900 ATH. Also worth noting is if you trendline from the previous large dump through the most recent smaller dump on both graphs, they both dip below and then come up and retest the intersection of the shoulder line and that trendline. Will Bitcoin collapse and correct as it did before?
Well, you tell me. Take a look at the EMAs (Willy21 blue line is very close to traditional RSI) and the Stoch on the longer time frame. We are in a situation where we are supposed to have the momentum to smash through major resistance with parabolic volume, yet we are very over extended and momentum indicator shows we are out of fuel.
You know the saying "Buy the rumor, sell the news"?
What's happening right now is merely this cycle's manifestation of China FUD.
I do expect a push into 6k-6.3k on this before it reverses and dumps. Be careful you don't get stuck with bags and be careful you don't short the wrong situation.
Market makers know people are trying to short and it may be used to push another ATH.