This latest short squeeze rally has pushed price into resistance around $2600, and this latest move was on less volume.
The ADX prints a corrective look, which makes this wave 4 a corrective zig-zag pattern (alternating from wave 2 flat)
The RSI is turning to stay in a bearish zone.
The recommendation is to sell here with a buy stop if price moves above wave 1...
The neckline of an inverted head and shoulders is being examined as resistance, and all eyes will be on internal trend momentum to see if the price can breakout to the upside to continue wave 3 of the new motive wave to the upside.
The ADX measures the strength of trend momentum and the indicator is turning to the upside inside a trend strength building zone...
Looks like a start of a 3rd wave, which should bust the neckline of the inverted head and shoulders pattern to the upside.
Staying Long.. protective stops placed just below $3200.. will raise as price rises.
Support at the 61.8% level from the latest low and high is being tested as support. Daily momentum is posting weak signals and likely not enough to push price through the golden ratio.
The ADX is still in a trend strength zone, and the directional index lines are flattening out. This looks lie a picture of a correction against a new near-term bullish...
This huge jump to the upside is still registering as a bullish move in a primary bearish trend.
This move to the upside is likely a 4th wave of 5 to make up wave A of a 5-3-5 Zig Zag correction.
Look for selling interest to return as price zeros in on the next couple Fibonacci levels. This should start wave 5 to complete wave A.
This is a weekly chart, so a...
Internal trend momentum is switching to the bulls as the Average Directional Index (ADX) starts to flatten out and turn around inside a strength building zone on the oscillator. Also, the green positive directional index line has crossed up through the red negative directional index line and is back turning higher to start the week. This is a bull signal for...
Been follow the RSI and the ADX to help signal a possible reversal and was looking for 3 signals to complete this validation.
1. Divergence between the price and the RSI. As price was making a new low the RSI was signaling less sellers making that low. This is a bullish signal.
2. But what about trend momentum? We want to see a weakening bearish trend and we...
I like seeing a rally to start the week, but so far there is not enough evidence yet to break key resistance.
Selling interest should come in here near the previous low that was once support, but now is resistance.
Until key resistance is taken out, the $2800 target is still in play (the target is marked with arrows).
With internal momentum still favoring the bears (although it could weaken a bit) the next level to consider a buy is inside the highlighted order block on the chart.
Internal trend momentum is measured with the ADX indicator, and it still favors the bears here.
The midpoint of the historical consolidation area (order block) is near $2800 and will re-evaluate...
Looking for 3 things here.
1. Divergence between price and RSI.. check!
2. The start of weakening bearish trend momentum.. check!
3. RSI line moving up out of oversold conditions.. waiting!
2 out of 3 makes me want to dabble long with protective stops.
I have marked with arrows each of the last 7 times the RSI for $BTC on the daily chart came up out of oversold conditions. (I have the arrows marked on the price chart too when it happened)
The green arrows mark the bull signals where the market found buying interest to move the market higher to start a bull move.
There were 2 red arrows where the market did...