So I know that I’m not only one that witnessed that astronomical drop from the precipice of $10k to where we are now.
For the record, that $9.8k mark was a resistance point from the last time that BTC was in that vicinity.
Right now, it appears as though it’s resting on that $8.8k mark at the moment.
This has been the 4H TF, so I’m going to kick it back a bit to see what I can detect in the ‘larger picture’ here.
All the indicators I’m seeing on the 3H TF indicate that the selling pressure is still pretty heavy on Bitcoin at the moment.
RSI is still headed downward (not oversold yet) .
Rate of Change on the RSI is still plummeting.
Stoch RSI oversold and flat
On-Balance Volume telling us we’ll continue going down too.
What’s most interesting though is that the volatility is continuing to spike. Check out the ATR here:
Higher volatility is better for all traders though because it means that the gains off of swings will be much greater than they are in times of low volatility.
That’s making me want to invest as soon as BTC finishes moving downward.
I figured that the price would correct back to the long-term downtrend line that we broke a few days ago. But, I thought it would happen earlier than this admittedly.
The volume was decreasing on bitcoin and the signals showed that we were due for this — but I think we all got kind of caught in the euphoria of ‘Bitcoin’s back!’ a bit.
I know I did and I think that biased some of the things I put up earlier. So, trying to look at this as objectively as possible here:
What’s crazy is the actual shorts being placed on BFX have actually went down with BTC.
In my opinion, this shows that bulls are fighting hard because they must be pushing the price up on BTC’s descent just enough to continue liquidating people that are trying to place shorts w/o enough margins.
That’s just a theory though.
This long wick on this candle here yesterday when BTC started free falling out of nowhere kind of corroborates that theory a bit. Shorts surged off it but started getting killed quickly.
So, it looks like after BTC’s initial plunge, there’s been a back & forth and shorters haven’t timed this well. At all.
Which is good news for bulls in my opinion.
On the contrary, there’s been a spike in the amount of longs being placed. So, folks must believe that this was a minor pullback before BTC increases even further.
Perhaps this is a solid indicator of sentiment in the community currently.
That’s today’s mini analysis.