Bitcoin Short to 50, 100, and 200 EMAJust as the title says I am looking to enter short on Bitcoin until the Daily 50, 100, and 200 EMA's: that gives us 6550, 7659, and 9014 as our targets respectively.
Generally on retracements of this size Bitcoin has reached or breached the 100 EMA but often fails to reach the 200.
The Daily Ichimoku Cloud Tenkan and Kijou give us support around the $7,000 mark.
I will be looking to enter on spot and margin longs between the 200 ($6,550) and 100 ($7,659). I have been shorting since the 11-12k area.
At the time of publication Bitcoin has just breached the 20 EMA of $10,375, which has generally held up the price on every touch since we started the bull run at 4k.
On June 26th, 2019 Bitcoin reached a high of $13,868.44 on CoinBase and Daily RSI reached a level of 91.56 signalling that we were approaching far overbought levels. I began shorting above $11,000 and selling spot above $10,000.
ADX has also failed to reach old highs, falling from a peak above 60 on our run up to $8,500 to between 40-45 on this spike up to $14,000. We can conclude from this that the trend may be weakening as DMI and ADX fail to reach old peaks on each continued new local high.
We have also got a convincingly large Daily Bear Divergence formed by the 3 arrows on RSI on the chart; as RSI failed to make higher highs on the run from $8,500 to $14,000 yet price continued to make new highs.
Bear Divergence:
Price: Higher High
Oscillator: Lower High
