Hello Traders!
Today’s analysis will be on Bitcoin’s recent developments, Bullish Divergence and CME futures gap filled, could a bounce be more probable from current rage?
There are a few technical indicators that point towards a market bounce
Points to consider,
- Clear bullish divergence on hourly timeframe
- Major resistance at .236 Fibonacci level
- Major structural support at 8K level
- Stochastics turning bullish
- RSI respecting upwards trend
- VPVR showing low volume of transactions
- Volume well below average
- Volume climax candles
- EMA’s yet to meet price
Bitcoin has finally filled its CME futures gap around the $8,000 mark where it held support and traded this region to form a potential bullish divergence. Price is making lower lows whilst the RSI makes consecutive higher highs.
Local structural resistance for bitcoin is the $9,200 mark, which is in confluence with the .236 Fibonacci level. A break from this level will be quite bullish…
The stochastics are on the verge of turning bullish, signifying that the downside steam has cooled of and a move upwards is more probable. RSI is respecting it’s upwards trend, we need to see it continue to diverge from price, and this will cool of the indicator from oversold conditions…
VPVR is quite interesting, as there is no high volume traded between current support and resistance, a bull move up would not experience heavy resistance due to lack of volume traded between the two regions.
The volume profile is also quite interesting; we’ve had multiple volume climax candles and large wicks being bought back up. This signifies a strong level of support that is defended by the bulls. The EMA’s have not yet reached price so, at current time being, it is bearish until we see a bullish cross…
It is more probable for Bitcoin to bounce and retest local support; it would be a natural market reaction after a straight flush down. This is supported by the tentative bullish divergence forming at current given time.
What are your thoughts on Bitcoins current price action?
Please leave a like and comment
And remember,
A streak of winning trades can boost your ego and self-confidence to such an extent that you start believing that you’re invincible. If that is the case, try to take a break from trading to calm your emotions down.
Today’s analysis will be on Bitcoin’s recent developments, Bullish Divergence and CME futures gap filled, could a bounce be more probable from current rage?
There are a few technical indicators that point towards a market bounce
Points to consider,
- Clear bullish divergence on hourly timeframe
- Major resistance at .236 Fibonacci level
- Major structural support at 8K level
- Stochastics turning bullish
- RSI respecting upwards trend
- VPVR showing low volume of transactions
- Volume well below average
- Volume climax candles
- EMA’s yet to meet price
Bitcoin has finally filled its CME futures gap around the $8,000 mark where it held support and traded this region to form a potential bullish divergence. Price is making lower lows whilst the RSI makes consecutive higher highs.
Local structural resistance for bitcoin is the $9,200 mark, which is in confluence with the .236 Fibonacci level. A break from this level will be quite bullish…
The stochastics are on the verge of turning bullish, signifying that the downside steam has cooled of and a move upwards is more probable. RSI is respecting it’s upwards trend, we need to see it continue to diverge from price, and this will cool of the indicator from oversold conditions…
VPVR is quite interesting, as there is no high volume traded between current support and resistance, a bull move up would not experience heavy resistance due to lack of volume traded between the two regions.
The volume profile is also quite interesting; we’ve had multiple volume climax candles and large wicks being bought back up. This signifies a strong level of support that is defended by the bulls. The EMA’s have not yet reached price so, at current time being, it is bearish until we see a bullish cross…
It is more probable for Bitcoin to bounce and retest local support; it would be a natural market reaction after a straight flush down. This is supported by the tentative bullish divergence forming at current given time.
What are your thoughts on Bitcoins current price action?
Please leave a like and comment
And remember,
A streak of winning trades can boost your ego and self-confidence to such an extent that you start believing that you’re invincible. If that is the case, try to take a break from trading to calm your emotions down.
