Intense selling pressure the last few weeks has pushed daily indicators down to oversold zones. I'm not one for catching knives, but that wick on the 4hr, 6hr and 12hr is hard to ignore.
-0.786 fib holding strong (no surprise there).
-Right shoulder support from previous reverse H&S.
-Class B hidden bullish divergence on the RSI & MACD.
Just before the 'bounce'; shorts had HALF A BILLION DOLLAR superiority over longs on bitmex, and since then, this number has halved.
I'm laddering longs down the wick waiting on a double bottom before we take a turn upwards, but as always, putting a tight stop under historical support. Betting on a H&S pattern formation on the daily with right shoulder rejection at 6800-7000. If this does play out, we will be dropping a long way.
Trade safe gang,
Custom
-0.786 fib holding strong (no surprise there).
-Right shoulder support from previous reverse H&S.
-Class B hidden bullish divergence on the RSI & MACD.
Just before the 'bounce'; shorts had HALF A BILLION DOLLAR superiority over longs on bitmex, and since then, this number has halved.
I'm laddering longs down the wick waiting on a double bottom before we take a turn upwards, but as always, putting a tight stop under historical support. Betting on a H&S pattern formation on the daily with right shoulder rejection at 6800-7000. If this does play out, we will be dropping a long way.
Trade safe gang,
Custom
Comment:
Hidden BEARISH div**
Managed to get a small long position from the laddered buys down the wick, pretty chuffed with that entry!
Still strong sell pressure, although today longs have small but significant superiority for the first time in a while.
Checking out the hourly, noticed some hidden bullish div on RSI, but pretty sure that has already played out and brought us back to the .786.
4hour RSI cupping through the oversold zone.
Looks like we still have room to go up, 6800 still on target, need to break about 6500 first, hope we can get the volume.
Cautious here, trailing stops but leaving room for those pesky hunters.