I failed to comment on the monthly close yesterday, which was a bit of a miss on my part. As you can see, we have a massive bearish engulfing candle, not an ideal signal for “up only” bulls that expected no more corrections in this “new paradigm.”
We will have to see how this month closes - if it is red, it confirms April’s ugly candle, the first since last August.
This looks “toppy” for now, but monthly charts are hard to read and Bitcoin can always pull a Bitcoin.
As for lower time frames, we do have bullish divergence with oversold RSI again on the 4-hour, which showed us a nice bounce back to around $59,000 and is still technically valid. The daily is yet to hit oversold, still.
We will have to see how this month closes - if it is red, it confirms April’s ugly candle, the first since last August.
This looks “toppy” for now, but monthly charts are hard to read and Bitcoin can always pull a Bitcoin.
As for lower time frames, we do have bullish divergence with oversold RSI again on the 4-hour, which showed us a nice bounce back to around $59,000 and is still technically valid. The daily is yet to hit oversold, still.
scott.melker@texaswestcapital.com