Bitcoin Technical Analysis 2022 - Based on OnBalanceVolumeHello every one, hope you all are doing good.
This is not a financial Advice, crypto is very volatile and risky, so please do research by your own before doing trade.
OBV OnBalanceVolume is one of important indicator to find the volume locations/movement of volume and the movement of the price.
sometimes it's hard to find out the Divergences using RSI alone, stochastic oscillator and MFI is also one good indicator to identify the Divergences.
Apart from RSI, MFI and stochastic, we can find divergence using OBV too.
For example, as I mentioned in the chart, the Orange Box (from Jan 2015 to April 2016) the price action of Bitcoin was roughly from 200usd to 500usd
but the OBV value is showing a huge "Divergences" roughly from just 3M to 23M perhaps the all-time high of OBV is 37M.
So, most of the critical volume is inside this orange zone, so throughout the life cycle of Bitcoin this volume is playing a vital role until now.
According to Wyckoff theory the market movers or market makers or so-called Composite Men (Orange Box) who buy cheaply and sell at high.
Ok, let's come to point, this time am making this Bitcoin Analysis based on OBV to find the critical zones of volume and where we are at now throughout the Bitcoin Life Cycle.
After deeply analyzing the OBV and drawing the trendlines and channels where the volume and price is respecting more, after the massive Breakout from the parallel channel (at orange zone),
Orange zone is the actual/core accumulation zone of overall Bitcoin where the Composite Men accumulated buying very cheaply and keep Distributing till now and Distribute until the Bitcoin is reset.
Final Conclusion1:
After the massive Breakout from the Parallel channel, the Momentum of OBV is not drastically increasing but instead its Dropping steadily.
From 2016-Breakout to until now 2022 the OBV value is ranging between roughly 25M to 38M (not huge difference), the momentum of going up is Dropped and
Instead of Breakout from the channel it Brokedown in the current Bear Market 2022 this is something concerned of.
So most likely the OBV will keep testing and testing the top of the channel and to my guess it keeps failing and failing same as the blue ascending triangle in the chart
and don't know when but, at some point of time at least once, it should test the bottom of the parallel channel. (May be this test will be the Reset point for Bitcoin).
Final Conclusion2:
Currently there is a slight Divergence created in OBV as price falling and OBV is showing small uptrend.
So most likely soon there will be a counter move in the upside direction and test the upper line of the parallel channel.
(In most cases this kind of slight Divergences happens in corrective waves when the market is selling off (during Distribution phase) and forcibly divert the market to move in reverse direction).
Please give a like and comment if you have any questions.
Thank you.
