Ok, hello everyone. We just had another pump the other day on a Sunday, and since we have rejected and we are trading at 7205 at the time of writing, below the 50 SMA on the hourly.
Now, I believe the pump was possible manipulation. Volume was extremely low when the move started @~7200. This probably went on to cause a short squeeze with some fomo longers joining in...
They then went on to wick it up to almost 7700 to make use of this liquidity to fill shorts! I believe that's where big players/whales/market makers filled their shorts.
Since then we have now dropped and have formed what looks like a kind of flat head and shoulders on the one hour, creating a slightly up-trending neckline which is almost creating a triangle like structure from the larger descending triangle resistance.
Now the target of this drop to me would be a retest of the 6600 region to create an almost full retracement, like BTC likes to do, and as per the possible head and shoulder pattern.
Now it would get interesting if 6.6k breaks as we will knock on the door at 6400 again... And if this breaks we could dump very quickly to the .786 fibo retracement @~5400.
Short term levels of confluence of resistance: 7230-7290, 7330-7380, 7380-7440, 7550, 7700, 7900
Support: 7200-7130, 7030-6930, 6885, 6600, 6420
Watch out for any wicks to the upside, volume is currently low and it won't take a lot to spike the price.
Now, I believe the pump was possible manipulation. Volume was extremely low when the move started @~7200. This probably went on to cause a short squeeze with some fomo longers joining in...
They then went on to wick it up to almost 7700 to make use of this liquidity to fill shorts! I believe that's where big players/whales/market makers filled their shorts.
Since then we have now dropped and have formed what looks like a kind of flat head and shoulders on the one hour, creating a slightly up-trending neckline which is almost creating a triangle like structure from the larger descending triangle resistance.
Now the target of this drop to me would be a retest of the 6600 region to create an almost full retracement, like BTC likes to do, and as per the possible head and shoulder pattern.
Now it would get interesting if 6.6k breaks as we will knock on the door at 6400 again... And if this breaks we could dump very quickly to the .786 fibo retracement @~5400.
Short term levels of confluence of resistance: 7230-7290, 7330-7380, 7380-7440, 7550, 7700, 7900
Support: 7200-7130, 7030-6930, 6885, 6600, 6420
Watch out for any wicks to the upside, volume is currently low and it won't take a lot to spike the price.
Comment:
We saw a low vol pump to 7440 that immediately flash dumped. this gives me extra conviction on the short.