ScottMelker

ScottMelker

Let's hope that the weekly chart closes here or higher on Sunday! We want to see the reversal candle from last week confirmed, and a weekly close above $69,000, the previous all time high. Pretty straightforward - yesterday was a big move, now we need to see it sustained. I am liking what I am seeing so far.

ScottMelker

I took a look at this chart on my chartapalooza stream yesterday afternoon, and it was by far the most striking setup that I saw. The weekly chart shows an incredible test and hold of support at .06293. As you can see, this was a major swing high at the beginning of 2023, which was never recaptured until a few weeks ago. What strikes me is the huge increase on...

ScottMelker

Bitcoin has a decent weekly close, with a long wick down on the candle showing tremendous buying demand off of the lows. That said, the previous week’s spinning top candle showed indecision and both buyers and sellers pushing on any real move. It seems we are in the chop at the moment. I still want a close above $69,000 for any sort of real confirmation of a move...

ScottMelker

Link was one of the first altcoins to move during the early days of this bull market and has largely stalled since. This has caused sentiment to shift negative, as impatient traders call it “dead” and ask why it refuses to rise. They have short memories. As you can see, LINK is still working on flipping key former resistance (the blue zone) to support. Last...

ScottMelker

I continue to say it, but will mention it again. For me, bullish divergence with oversold RSI is the most consistent technical signal that I have ever seen for predicting a solid bottom or bounce. Does this mean THE bottom is in? No. But did it tell us that the market was ready to bounce? Yes. I have been showing these for years in the newsletter and on...

ScottMelker

Bitcoin has confirmed bullish divergence on the 4-hour chart (and the hourly, which is not particularly powerful), with a likely divergence printing on the 6-hour. These are signals I love to look for for likely bottoms, even if temporary. As you know, these divergences can build - meaning we get more lows on price with more highs on RSI to make them stronger. I...

ScottMelker

My charting strategy on corrections (and pumps) is very simple and clear. Wait for RSI to be oversold or overbought, then look for divergences. We had bear divs all over the charts at this local top - now we look for bull divs at the bottom. 4-hour is almost oversold.

ScottMelker

We currently have a spinning top last week with a close below the previous all time high resistance, which I discussed yesterday. Now we have a potential large down candle to follow up, although it is ONLY TUESDAY and we need to see confirmation on a weekly close on Sunday. Nothing to see for now, but worth watching and waiting for this weekly candle....

ScottMelker

Bitcoin had a rough week, closing below the previous all time high resistance. Bulls were looking for a definitive move above $69,000 to end the week, but it was not to be. The candle was a doji of sorts, which usually indicates a pause in the trend, and can mean a reversal if the following candle confirms. We will be watching the candle this week closely. As I...

ScottMelker

Wow. The memecoin frenzy is absolutely sending SOL flying. For those who don’t understand, the bulk of the trending memes are on Solana, meaning that people are trading them using Solana as the base currency… so this drives a ton of interest and buying of Solana to get in on the madness. SOL is currently at the last resistance on the chart, $207, before the all...

ScottMelker

If you were trading on lower time frames, you saw that Trading Alpha also gave a clear short signal around $72,000… squeeze shading, a red arrow and red dots. Such an easy indicator to use.

ScottMelker

The signs of a correction were there... but I was not watching. I have not been a chart hawk this week, so this analysis is in hindsight. We had VERY clear bearish divergence with overbought RSI on multiple time frames, including the daily. The good news? We have potential hidden bullish divergence forming, but need to see a clear elbow up on RSI to confirm....

ScottMelker

I first bought Frontier Wallet under 20 cents, and have been trading in an out since. I actually sold quite a bit around 70 cents and a dollar, so this is not something that I was looking to add more to… but now it has one of the most appealing charts I can find. You always have to pay attention when a coin shows relative strength on days when everything else is...

ScottMelker

This remains one of my largest holdings, and one that I have been sharing since the bottom. I have traded around my core position. As you can see, after months of consolidating, INJ has broken out for a new all time high. This means that it is once again in a blue sky breakout. It may not come back for a retest, but conservative traders like to buy the previous...

ScottMelker

What a fun day. Bitcoin “crashed” back to the previous all time high around $69,000, predictably testing it as support before seeing a huge move back up near the daily highs. It has continued up since, now trading above $73,000. What is there to say? There’s more demand than supply.

ScottMelker

If there was ever any doubt, yesterday closed the first daily candle above the previous all time high of $69,000. Price is officially in discovery, with blue skies ahead. This is almost every trader's favorite situation, because there is no historical resistance.

ScottMelker

Just your regular reminder that there is no meaningful high time frame resistance between the current price and the all time high. In the past, Ethereum has always lagged and made a high when Bitcoin stabilizes. This time does not need to be the same - but it does appear likely.

ScottMelker

Bitcoin is in price discovery. Read that again, because it seemed like a distant dream a few months ago. Bitcoin has broke it's all time high and is pushing higher, attempting to finally flip the previous all time high of $69,000 to support. Sustained BTC ETF inflows are fueling this move - for the first time was know EXACTLY why price is rising, and there's...