After the recent increase in price, it looks like $BTC Futures may be building some liquidity for it's next leg up. What does this mean? I'm expecting price to fall over the course of the next 3 months into a falling wedge pattern. This pattern is often viewed as a bullish pattern meaning price will continue to recover.
I'm curious to see how this plays out....
As I predicted a few weeks ago we moved up very quickly through the liquidity gap in the 4000's.
This allowed price to move up 15% with very little increase in open interest on the long side - meaning the liquidity gap is still there.
1) Huge sell off when we hit 5k
2) RSI bearish divergence on 4H
3) Stuck below 200 day moving averages
(***DISCLAIMER: I'm not a professional trader, this is not financial advise, you shouldn't make any trade based on this idea***)
Looking at the BTC1! daily chart it seems that it hasn't been able to push through 200EMA (green line) and is now heading back.
I'm expecting a retrace above the strong support area (red rectangle) around lows 4k$, right...
BTC continues its crazy run but ran into serious resistance here at around $5,500
It was an area where we paused right before the dump to new lows. If we can break above this level than 5800-6000 is on the cards.
Hedging long positions here would be a smart idea in case we do pullback as the gaps below are plentiful right now to go and close
A close back below...
A "dead cat bounce" price pattern may be used as a part of the technical analysis method of stock trading. Technical analysis describes a dead cat bounce as a continuation pattern that looks in the beginning like a reversal pattern. It begins with a downward move followed by a significant price retracement. The price fails to continue upward and instead falls...