Tradingview is erroring out when I attempt to publish the 1 hour chart, so here's the description followed by the 4 hour chart description as well:
Good morning, traders. Bitcoin had a heck of a weekend and showed us exactly why we wait for confirmations and never trade based solely on our opinions, and that the weekends have low liquidity and therefore require less effort to move the market. I have continued to speak about these two things and I hope everyone was listening. We saw two well-timed dumps, one on Friday and the other on Saturday, each within 10 minutes of the daily candle closing. June 9th's volume was a measly 3,845,220,000 and June 10th saw a spike up to 5,804,840,000 as a result of the market movement. Volume has not been seen that low since the weekend of April 6th-8th (the large short squeeze followed soon after on April 12th). We have not seen volume as high as the latter since May 24th. Current social media sentiment is extremely bearish with everyone calling for sub $4000 prices while shorts are nearing overbought in conjunction with %B being overbought, as I mentioned we need to watch as one of the likely strongest indicators of price movement.
Looking at the 1 hour chart, price appears to be creating a checkmate pattern. We can see that at the end of the initial downward movement, price printed a bullflag which then saw price breach the top of it and find a ceiling at around $6800. At this point, the potential checkmate pattern has price moving between $6630 and $6800 ( and more precisely, between $6730 and $6780). A checkmate occurs when there is a significant sell off, or buy run, that causes long candles followed by a support area where the current action is "checkmated" (unable to move through) by the opposing side. The result is usually a price reversal. In addition, price is currently moving within an ascending broadening wedge which, as we know, is another bullish pattern. If price pushes upward, then we will be watching for it to reach $7000-$7100 initially. RSI has breached its own resistance, as has %B, signalling further potential upward momentum. %B let us know that a potential reversal was in the works as it noted bullish divergence on the last leg down as denoted by the black arrows on price and %B.
The 4 hour chart shows us more of the same, with RSI remaining oversold at this time and producing the very slightest bit of bullish divergence. As on the hourly chart, %B signaled a potential reversal at this point with its bullish divergence during the last leg down. MACD is leveling out at this time and drawing closer to the signal line creating a shrinking negative histogram. On this time frame, other than the descending broadening wedge pattern, I am most interested in seeing RSI and %B breach their descending resistance lines which would indicate price reversal, at least for the short term.
Good morning, traders. Bitcoin had a heck of a weekend and showed us exactly why we wait for confirmations and never trade based solely on our opinions, and that the weekends have low liquidity and therefore require less effort to move the market. I have continued to speak about these two things and I hope everyone was listening. We saw two well-timed dumps, one on Friday and the other on Saturday, each within 10 minutes of the daily candle closing. June 9th's volume was a measly 3,845,220,000 and June 10th saw a spike up to 5,804,840,000 as a result of the market movement. Volume has not been seen that low since the weekend of April 6th-8th (the large short squeeze followed soon after on April 12th). We have not seen volume as high as the latter since May 24th. Current social media sentiment is extremely bearish with everyone calling for sub $4000 prices while shorts are nearing overbought in conjunction with %B being overbought, as I mentioned we need to watch as one of the likely strongest indicators of price movement.
Looking at the 1 hour chart, price appears to be creating a checkmate pattern. We can see that at the end of the initial downward movement, price printed a bullflag which then saw price breach the top of it and find a ceiling at around $6800. At this point, the potential checkmate pattern has price moving between $6630 and $6800 ( and more precisely, between $6730 and $6780). A checkmate occurs when there is a significant sell off, or buy run, that causes long candles followed by a support area where the current action is "checkmated" (unable to move through) by the opposing side. The result is usually a price reversal. In addition, price is currently moving within an ascending broadening wedge which, as we know, is another bullish pattern. If price pushes upward, then we will be watching for it to reach $7000-$7100 initially. RSI has breached its own resistance, as has %B, signalling further potential upward momentum. %B let us know that a potential reversal was in the works as it noted bullish divergence on the last leg down as denoted by the black arrows on price and %B.
The 4 hour chart shows us more of the same, with RSI remaining oversold at this time and producing the very slightest bit of bullish divergence. As on the hourly chart, %B signaled a potential reversal at this point with its bullish divergence during the last leg down. MACD is leveling out at this time and drawing closer to the signal line creating a shrinking negative histogram. On this time frame, other than the descending broadening wedge pattern, I am most interested in seeing RSI and %B breach their descending resistance lines which would indicate price reversal, at least for the short term.
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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.
Related publications
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.