-- Warning --
Big post inbound!
The most important piece I ever wrote.
-- Warning --
Paradigm shifts may occur in reading this piece. Please know it comes from a sincere heart, and even if I am wrong - just know it comes from a place that deeply cares and loves you dear reader.
This content has nothing to do with Technical Analysis or Fundamental Analysis ....
Momentum/Volume drying up similar to mid 2019 environment with extremely stretched technicals. Macro environment (rising rates & inflationary expectations) also stacked against stretched (especially levered) assets. DeFi growth/institutional adoption will keep happening, but BTCUSD will likely enter a multi-year correction / consolidation period.
I am always excited about what the users here conjure up with Pine. I don't know if it's because of Pine’s new features, but little by little TV just keeps getting better and better.
What caught my attention is the Raindrop from Makit0. You can find the indicator, or let's better call it this charting instrument, when you search for "Raindrop" in the Indi...
I thought this recent move might be it, but it's not climactic enough. So continue being short but expect a retrace.
Based on long term fib level which is holding well, it'll either go down to around 320 from here, or retrace and then go back down to 320-ish. Hoping for the retrace from here, to offload at 390 to 415.
Reversion to the mean.
Dip supported by the 200MA, may be forming H&S but I doubt it in these market conditions. Negative momentum has increased rapidly, expect a return to the mean. Volume of shorts and longs is steadily increasing.
Just looking back at a stock for a hindsight view on picking the best buy and sell times.
Note the OBV matches very well with the RSI, the short term trend reversal is confirmed with RSI bearish divergence and the retest of on the OBV downtrend line.
I love fractals. Here we have a micro bull flag embedded within a med. term flag embedded within a greater macro flag, wow. I called the recent btc price jump to 10k on my first video. I am calling this move to 11k. Price reverts to the mean and the mean is up not down - relatively speaking. Don't believe me, just watch.
These times are only estimates:
This looks like a nice technical setup for mean reversion coming straight out of an overreaction.
The volume by price range shows the 3 clear points with a lot of price memory. Most holders that haven't sold will feel they are owed money and be looking to relieve the tension of the loss at those points.
Price reversed from channel support and broke out of ascending trendline and resistance level.
Price has made a pullback and retests the broken levels that lined up with moving averages.
Considering that price has broken out of the counter trendline, the price has the potential to move higher towards the resistance zone from near the current level.
Thanks for reading!
Back from Hols - Back to Trading - Back to Profit..!!!
Weekly (W) Chart, Post Earnings showing good Pullback towards Mid BB%.
W RSI is <10.
Looking for S/R around the 52 level.
Looking for Reversal to mean back higher.
Aiming for 52.50 /50 Put Credit Spread with 55 Calls for directional Bias higher.
Exp SEPT - As this is weekly Chart, looking to leave time to...
It's very uncommon for BTC to not revert to the mean and at least reset the RSI to the 50 level before continuing its trend upwards, this is a 3 day chart so be aware what I am showing could take a while to play out but its very probable.