Hello everyone,
As you can see we saw yet another complete "Bart Simpson" like pattern on BTC today and late last night. These patterns are the result of low volume, overleveraged traders, and algos. Essentially it is just chop, and as a result, BTC is still trading within the channel between 7900 and 8150. I personally have been playing the ranges, but I do believe we will still see my ultimate target.
There are still bearish divergences on the RSI on larger time frames and now a hidden bearish divergence on the hourly chart. Volume is declining, and each upward thrust is followed by a weaker rally. It is possible we break to the upside, but in my opinion, it is unlikely without some sort of FA backed news. If I had to guess, expect continued distribution until we ultimately retrace to the levels indicated on the chart.
On the hourly, it is worth re-mentioning the head and shoulder pattern I posted about yesterday. The neckline at 7900 still has not broken, but the pattern is still valid until we make a higher high. Head and shoulders patterns can often have multiple shoulders so this is why we can see something like this and still not have reached target.
Happy Trading and please let me know if you agree or disagree with my analysis in the comments below, and I appreciate your time.
As you can see we saw yet another complete "Bart Simpson" like pattern on BTC today and late last night. These patterns are the result of low volume, overleveraged traders, and algos. Essentially it is just chop, and as a result, BTC is still trading within the channel between 7900 and 8150. I personally have been playing the ranges, but I do believe we will still see my ultimate target.
There are still bearish divergences on the RSI on larger time frames and now a hidden bearish divergence on the hourly chart. Volume is declining, and each upward thrust is followed by a weaker rally. It is possible we break to the upside, but in my opinion, it is unlikely without some sort of FA backed news. If I had to guess, expect continued distribution until we ultimately retrace to the levels indicated on the chart.
On the hourly, it is worth re-mentioning the head and shoulder pattern I posted about yesterday. The neckline at 7900 still has not broken, but the pattern is still valid until we make a higher high. Head and shoulders patterns can often have multiple shoulders so this is why we can see something like this and still not have reached target.
Happy Trading and please let me know if you agree or disagree with my analysis in the comments below, and I appreciate your time.