Those days we had a nice series of higher low and after the double bottom price nicely raised of +20% anyway we are into a bearish rising wedge and approaching to the tight section so the breakout is imminent
Moreover the breakout could happen near the top of the main downtrend channel, the bearish trend we are into from months.
In this setup I'm noticing few things.
Yesterday the weekly resistance tested was just a quick push, price bounce back a little and remained into the wedge, considering that there is little volume and we are very near to the SMA50 and the upper trendline there is a strong psycological pressure to reach those target, and at that price (7700$-7800$) RSI could reach the oversold status.
Those 3 signals are a potential setup for a trend reversal, so this could be the right time for taking a partial profit.
On the 4hr chart is interesting to notice a possible bearish RSI divergence, and after the resistance test of yesterday the price could retrace a bit but still within the wedge limits: 7080-7100$ the possible bounce back.
RSI divergence on the 4hr chart are fairly strong signals, let's see if this will be confirmed
I traced a possible trend in green with small rises and pullback (like after the rsi divergence) until the target, this could be an healtly price trend but I fear it could develop in something fishy, and I tell you way:
What I don't like is a possible strong manipulation going right under our eyes:
Yesterday shorts position massively staked up to +50% and after a really big transfer of 100 million worth of Tether from cold storage to Bitfinex was made:
twitter.com/eurtprinter
omniexplorer.info/ad...GxRQnFKyb3G1FAJysSfz
To me this is a potential setup for a flash pump in order to eat all those shorts, and the target is right on the 7700$-7800$ region, after that is "no man land". Price could even consolidate from here, but in my opinion this kind of manipulation (if happens) usually lead to an equally strong pullback...we will see in the next days.
Moreover the breakout could happen near the top of the main downtrend channel, the bearish trend we are into from months.
In this setup I'm noticing few things.
- rising wedge really tight, near to breakout
- price is again near the 'old' upper bearish trendline, which we are into back from February
- SMA50 is matching the upper trendline mentioned above
- RSI is above 60 (usually a bullish sign)
- 7400$ weekly resistance tested a bounce back right at 0.618fib
Yesterday the weekly resistance tested was just a quick push, price bounce back a little and remained into the wedge, considering that there is little volume and we are very near to the SMA50 and the upper trendline there is a strong psycological pressure to reach those target, and at that price (7700$-7800$) RSI could reach the oversold status.
Those 3 signals are a potential setup for a trend reversal, so this could be the right time for taking a partial profit.
On the 4hr chart is interesting to notice a possible bearish RSI divergence, and after the resistance test of yesterday the price could retrace a bit but still within the wedge limits: 7080-7100$ the possible bounce back.
RSI divergence on the 4hr chart are fairly strong signals, let's see if this will be confirmed
I traced a possible trend in green with small rises and pullback (like after the rsi divergence) until the target, this could be an healtly price trend but I fear it could develop in something fishy, and I tell you way:
What I don't like is a possible strong manipulation going right under our eyes:
Yesterday shorts position massively staked up to +50% and after a really big transfer of 100 million worth of Tether from cold storage to Bitfinex was made:
twitter.com/eurtprinter
omniexplorer.info/ad...GxRQnFKyb3G1FAJysSfz
To me this is a potential setup for a flash pump in order to eat all those shorts, and the target is right on the 7700$-7800$ region, after that is "no man land". Price could even consolidate from here, but in my opinion this kind of manipulation (if happens) usually lead to an equally strong pullback...we will see in the next days.
The daily chart in comparison, take a look at the SMA50 exactly near the upper trendline.
Today daily candle could close with a lower low but with price into the wedge, this will confirm the retracement after the 4hr RSI divergence