Bitcoin price is sitting on support, but does it mean anything?
Good Thursday morning, traders. I'm sure many of you have thrown in the towel and believe price MUST absolutely make new lows. Remember, price does not HAVE to do anything, especially not what retail traders believe it needs to do and that is why retail traders often end up buying the top and selling the bottom. While I am not convinced in which direction price is about to move just yet, here are the things that I find most compelling at this time. In addition to everything else noted below, TD sequential is at a 9 for today's daily candle and there is significant bullish divergence on the daily which provides a strong case for upward movement sooner rather than later. Bitcoin dominance continues to rise and is currently 48.8%.
Price is sitting right above the S1 daily pivot and daily RSI is sitting on oversold. At this same point in 2015 (yes, I believe we are closer to that point when looking at price action and volume, not much earlier as has been suggested by everyone else looking at derivatives of this in the form of indicators) we may have been where it is noted that price was testing the downward sloping resistance line as support as well. Notice this is just slightly different than my other recent Wyckoff comparison analysis attached below which looks at the current 1D v. the previous 3D time frame. Price in both instances is also sitting on the support line indicated, which is derived from the same area in each. As I discussed in last night's live stream, this creates a perfect bounce area with indicators being oversold on many TFs and printing bullish divergences. However, it is also the perfect area from which to create a capitulation-type bounce - a terminal shakeout to remove the remaining weak hands from the market before pushing out of the correction. If this occurs, I don't expect to see price reach sub-$5000 levels at this time. Realistically, we are now testing support which is the next step after a spring, so my initial expectation would be to see price continue up from this general area. Notice I have added a red line to the current price movement as it denotes the bottom of the support area. The test after the spring should end within the support zone which in this case is denoted by the horizontal dotted line and that horizontal solid red line. So, when I say this general area, that is what I am referring to. This means price could potentially move downward another $300-$400 before completing the test and without going into capitulation. Volume has continued to drop significantly during, and since, yesterday's move down further suggesting a reversal in trend may be setting up. However, we don't trade on opinions rather we evaluate how price action and volume continue to play out and then trade accordingly.
As always, I will be discussing this in greater depth during today's live streams at 10 a.m. CST and 9 p.m. CST and looking at various TFs. TV won't allow me to post the social media site where I will be broadcasting from, but it's easy to find so I am sure if you are interested in tuning in you'll have no problem finding me. Thank you for checking out the analysis. Be sure to leave a "like" on the way out.
Price is sitting right above the S1 daily pivot and daily RSI is sitting on oversold. At this same point in 2015 (yes, I believe we are closer to that point when looking at price action and volume, not much earlier as has been suggested by everyone else looking at derivatives of this in the form of indicators) we may have been where it is noted that price was testing the downward sloping resistance line as support as well. Notice this is just slightly different than my other recent Wyckoff comparison analysis attached below which looks at the current 1D v. the previous 3D time frame. Price in both instances is also sitting on the support line indicated, which is derived from the same area in each. As I discussed in last night's live stream, this creates a perfect bounce area with indicators being oversold on many TFs and printing bullish divergences. However, it is also the perfect area from which to create a capitulation-type bounce - a terminal shakeout to remove the remaining weak hands from the market before pushing out of the correction. If this occurs, I don't expect to see price reach sub-$5000 levels at this time. Realistically, we are now testing support which is the next step after a spring, so my initial expectation would be to see price continue up from this general area. Notice I have added a red line to the current price movement as it denotes the bottom of the support area. The test after the spring should end within the support zone which in this case is denoted by the horizontal dotted line and that horizontal solid red line. So, when I say this general area, that is what I am referring to. This means price could potentially move downward another $300-$400 before completing the test and without going into capitulation. Volume has continued to drop significantly during, and since, yesterday's move down further suggesting a reversal in trend may be setting up. However, we don't trade on opinions rather we evaluate how price action and volume continue to play out and then trade accordingly.
As always, I will be discussing this in greater depth during today's live streams at 10 a.m. CST and 9 p.m. CST and looking at various TFs. TV won't allow me to post the social media site where I will be broadcasting from, but it's easy to find so I am sure if you are interested in tuning in you'll have no problem finding me. Thank you for checking out the analysis. Be sure to leave a "like" on the way out.
