BTC Daily Bull Break Currently Lacking Follow Through
The break in the tightening daily range happened when it was expected as far as timing goes, and favored the bulls in a quick, high volume move.
One thing missing... follow through. Look at the move on the 5 min chart. The vast majority of the price action and volume was on one 5 minute candle. We went from $10,116 to 10,680 in 25 minutes, and never saw a higher low and higher high from that point. 5 and 15 min RSI were very high when the bull break occurred, which played a major role in me personally passing up on this trade. From there it was just a slow fade with no 5 minute higher low and higher high.
I say this often but in order to keep pressure on shorts we MUST see continuation moves... 5, 15, 60 minutes higher lows in healthy bull flags of consolidation and then continuation to higher highs. If you see price action that allows any bear that entered above $10,500 to be comfortable with no 5 minute action forcing him to cover, shorts stay in the trade adding to downside pressure.
The bulls still have a chance for follow through but if we do not break $10,953, our 2nd daily lower high of resistance, by Wednesday, we will consider this a failed bull break. I will remain without a shorter term position until I see some confidence from the bulls that weekly EMA12 will hold for weeks more.
One thing missing... follow through. Look at the move on the 5 min chart. The vast majority of the price action and volume was on one 5 minute candle. We went from $10,116 to 10,680 in 25 minutes, and never saw a higher low and higher high from that point. 5 and 15 min RSI were very high when the bull break occurred, which played a major role in me personally passing up on this trade. From there it was just a slow fade with no 5 minute higher low and higher high.
I say this often but in order to keep pressure on shorts we MUST see continuation moves... 5, 15, 60 minutes higher lows in healthy bull flags of consolidation and then continuation to higher highs. If you see price action that allows any bear that entered above $10,500 to be comfortable with no 5 minute action forcing him to cover, shorts stay in the trade adding to downside pressure.
The bulls still have a chance for follow through but if we do not break $10,953, our 2nd daily lower high of resistance, by Wednesday, we will consider this a failed bull break. I will remain without a shorter term position until I see some confidence from the bulls that weekly EMA12 will hold for weeks more.
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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.
Checkout our full trading resources online chartguys.com
Improve your TA with our free ebooks chartguys.ac-page.com/lp-all-ebooks?utm_source=tradingview&utm_medium=social
Improve your TA with our free ebooks chartguys.ac-page.com/lp-all-ebooks?utm_source=tradingview&utm_medium=social
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.