In the current price range and liquidity zones, we see significant selling pressure (bears in control), with not-so-significant buying pressure (bulls not interested in holding longs).
This can be ascertained by the cumulative delta at three points in time when the price was at the current level, creating pivot points for reference:
Note the rejection of buyer interest at each of these pivot points, indicating that the price should move to a lower zone of liquidity.
Two confluences that would indicate bulls are controlling the market would be (1) Cumulative delta consolidating ABOVE the highest pivot point, AND, (2) the price is trading above the highest long-term pivot point (purple).
We also see bearish divergence in the RSI while the price has been trading in the current range.
An increase in price without the cumulative delta breaking the highest pivot point is a strong indicator of a bull trap to knock out long positions (possible warning zone) before moving into liquidity below the current zone, namely $16.5-$17.2k
We are currently trading roughly in the middle of the current range, between major liquidity levels. This, along with increased volume usually indicates a move to one end of the range is in the works.
SUMMARY
Recent RSI bearish divergence coinciding with strong rejection of cumulative delta (CD) pivot points at major liquidity zones. Possible bull trap incoming if CD remains in downtrend against price.
Thank you all! Please share your ideas and if you've found this helpful, insightful, infuriating, or interesting, please 👍🏻 That's what keeps me coming back!
This is not financial advice, DYOR and due diligence, don't invest more than you can afford to lose, and remember: Nobody missed the boat, it's barely started boarding 😀
This can be ascertained by the cumulative delta at three points in time when the price was at the current level, creating pivot points for reference:
- June 15-23
- Aug 31-Sep 7
- Sep 22-27
Note the rejection of buyer interest at each of these pivot points, indicating that the price should move to a lower zone of liquidity.
Two confluences that would indicate bulls are controlling the market would be (1) Cumulative delta consolidating ABOVE the highest pivot point, AND, (2) the price is trading above the highest long-term pivot point (purple).
We also see bearish divergence in the RSI while the price has been trading in the current range.
An increase in price without the cumulative delta breaking the highest pivot point is a strong indicator of a bull trap to knock out long positions (possible warning zone) before moving into liquidity below the current zone, namely $16.5-$17.2k
We are currently trading roughly in the middle of the current range, between major liquidity levels. This, along with increased volume usually indicates a move to one end of the range is in the works.
SUMMARY
Recent RSI bearish divergence coinciding with strong rejection of cumulative delta (CD) pivot points at major liquidity zones. Possible bull trap incoming if CD remains in downtrend against price.
Thank you all! Please share your ideas and if you've found this helpful, insightful, infuriating, or interesting, please 👍🏻 That's what keeps me coming back!
This is not financial advice, DYOR and due diligence, don't invest more than you can afford to lose, and remember: Nobody missed the boat, it's barely started boarding 😀