Good Friday morning, traders. Bitcoin has fallen from the potential double top on the short go, but remains within the ascending triangle. For those paying attention during last night's short downward movement, the %B indicator again told traders when to get ready for the bounce. Nothing that happened over night should be a surprise for anyone who tuned into our evening live stream. I told everyone I was increasingly nervous about bulls being able to hold their position against resistance because they hadn't pushed through yet and were likely to drop a bit before a bounce back up. Of course I mentioned a "hail mary" scenario whereby shorts could potentially liquidate due to their growth, thereby propelling price through resistance before a short retrace. As I said, I mentioned that traders should watch the BTCUSD Shorts as they were building at a ridiculous rate and were significantly oversold on the 30 minute time frame (90+ RSI). At this time, I remain more bullish than bearish. A breakdown of the ascending triangle will likely having me move to a more neutral position.
As mentioned above, the 30 minute chart's %B indicator told us when to prepare for the bounce. We can see that %B dropped into oversold prior to the final leg down. At the end of that last leg, we see %B printed a higher low. That gave us lower lows for price but higher lows for %B, indicating a bullish divergence (price reversal). We can also see that at that point, RSI dipped into oversold territory as well. RSI dropping into oversold at the point that %B is oversold and printing a bullish divergence is significant confirmation. A look at price shows us that the bottom of the 30 minute cloud is supporting it at the moment. A push upward, and breach of the Bollinger Band's moving average, would suggest further bullish momentum with an initial target of the top of the cloud and then the upper Bollinger Band.
Be sure to check out our other charts for the rest of the story.
As mentioned above, the 30 minute chart's %B indicator told us when to prepare for the bounce. We can see that %B dropped into oversold prior to the final leg down. At the end of that last leg, we see %B printed a higher low. That gave us lower lows for price but higher lows for %B, indicating a bullish divergence (price reversal). We can also see that at that point, RSI dipped into oversold territory as well. RSI dropping into oversold at the point that %B is oversold and printing a bullish divergence is significant confirmation. A look at price shows us that the bottom of the 30 minute cloud is supporting it at the moment. A push upward, and breach of the Bollinger Band's moving average, would suggest further bullish momentum with an initial target of the top of the cloud and then the upper Bollinger Band.
Be sure to check out our other charts for the rest of the story.
