BTCUSD (D1) -- Failed to close above all-time Daily Closing High
Updated
BTCUSD Not saying it can't mount another run at making a new all-time daily closing high above previous level, as well as plenty of time remaining to make a new weekly closing high; but I'll just keep my comment short and sweet in the interest of brevity.
Two words: caveat emptor.
(1) Price has run very far very fast in a very short amount of time without a healthy consolidation since the breakout from the years-long downtrend around 10k a month or two ago. Not healthy.
(2) Price is currently just above the yearly R2 pivot resistance, which is often a reversal zone, though admittedly not 100% of the time. But in my experience probability isn't on your side when buying near the R2 or selling near the S2. Tempt fate too many times and inevitably the law of large numbers and reversion to mean asserts itself with a vengeance.
(3) Price briefly got above the all-tie daily closing high, before reversing and closing under it. Fail.
(4) A confluence of several trend-based Fib expansion targets sit just above current price.
(5) While longer-term momentum remains relatively healthy and strong, at least to my eyes, note the epic RSI divergence failing to make any new highs during the entire recent run up.
CONCLUSION: Still patiently awaiting pull-back and consolidation before re-grossing up long position at lower levels. Don't hate, appreciate!
Trade active
Ouch! That's one ugly red candle today. Solidly rejected right at the all-time weekly closing high of $18,917 and didn't even get a chance to even think about making another attempt at re-challenging the all-time daily closing high of $19,261. Although the week isn't yet over, if BTCUSD closes out the week having been above both levels only then to give way to reversal failure with strong downside move and a close below both levels, it may portend additional weakness to come before shaking out the weak hands and buyers regain control. Caveat emptor!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.