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So, for those that know me — you know that I always harp on volume because volume is one of the biggest predictors of a potential reversal in trend and it rarely fails in doing so.
As you can see from the picture above (12H TF), the volume has been steadily decreasing.
One of the most important indicators that I keep advocating the use of is the Rate of Change applied to the RSI. It is a direct visual representation of the price movement of the crypto.
As you can see, this momentum is still strong as ever on the 12H chart.
However, as you can see above — it is beginning to wane on the 4H chart.
This is even more so the case for the 1H chart.
Based on the information above, I firmly believe that this will start to showup on the 12H chart as well and that enough periods have not yet passed for this to be reflected in the price action.
I’ve mentioned this before and I’ll say it again — but this is the rawest and best way to detect divergence in indicators before it can be observed in the indicators themselves. It’s allowed me to bail out of a LOT of coins early and also get in there early too.
I’ve mentioned this several times in the past and I’ll continue to do so until traders really start to catch on and try out this system, because it’s ridiculously easy to understand and use.
Back to Our Analysis
“Didn’t you predict that we were going to hit $8.4k man? This is hovering in and around $8.1k. What’s going on??”
I did and I genuinely did expect the price to go up to that point as I thought that was the next resistance point. Let’s visit the chart again to see if there is a possible resistance in there that I may not have accounted for.