Entry: anywhere from 3800-3875 for a limit order OR a sell stop at 3799
(all prices BitFinex)
Descending triangle in a down-trend, with declining volume and spreads. To see a perfect example of a descending triangle in action with this volume profile, zoom out to the BTCUSD weekly chart for 2018.
Entry isn't important...
The 7750 level was the resistance level in June which sent BTC to the depths of 6K. Now it's being used as support. The VPVR gaps mean we'll likely zoom back above 8K, go sideways, and then zoom to 8900.
This is one of the best setups you'll find.
Target: 8900. Trade duration: 1 week. Stop: 7500-7600 depending on entry and risk.
BTC trends change direction with RSI divergences on the daily, as shown above. The general strategy is to bet with the prevailing trend until a new divergence and/or trend emerges. Sometimes, like the capitulation spike in February, a divergence isn't necessary. Until this big dump, we didn't have a bullish divergence or capitulation to change the direction. Now...