Hey Guys,
I'm looking at BTC daily chart. If we look at the past year we have a clear descending triangle forming on BTC price action (highlighted in blue). Whilst the descending triangle was forming we also had decreasing volume (characteristic of a descending triangle). The dotted yellow line denotes the height of the triangle and would be my estimate for a target given a breakup or a breakdown. We clearly had a breakdown, and that breakdown just about hit our target.
Notice BTC is giving a strong reversal signal given the RSI divergence forming on the daily chart (highlighted in pink). This has been an incredibly reliable signal in the past.
Please also note that shorts are just about at an all time high on Bitfinex; the possibility for a short squeeze if steadily increasing.
I'm calling for a reversal and a return to normal (hopefully we'll see upwards of $6,000 again, but who knows).
By the way, if you look around the RSI divergence can be seen on a ton of charts (ie ETHUSD on coinbase, LTCUSD on coinbase, APPL, the DOW JONES, NASDAQ, S&P 500, RUSSELL 2000). Seem to me that crypto has been roped in with a big correction in the equity markets. Hopefully this reversal signals will play out and we'll be seeing new highs in equities come 2019.
Till then. . .