PRICE ACTION
The short timeframe charts of 5m & 4H aren’t really providing much in the way of guidance; so we need to look at the larger period charts as we wait for a decision to be made on course of action.
The 1W chart closed the previous week with a solid red body after breaching into new highs through the middle of the week. Obviously the generally accepted catalyst for this was the Tether news; however – as outlined in previous TA – it was always going to be hard for bulls to break above the 52W without revisiting lower and building a support base first.
The 1D chart also has an interesting pattern showing; with a quite long pennant current being filled in with a number of wicks. As for which direction the pennant may break; the failure of the 28D MA to hold as support probably gives as a healthy dose of bearishness. Volume is still incredibly nervous though; with no one really ready to make a move.
This is the strongest chance bears have had to regain control since the rally that has highlighted the first quarter of 2019. If the bulls manage to find a way to break out of this position; that is surely a strong setup for the rest of the year...
Bears currently have more in their favour though; so it is a safer bet to side with them...for now.
OPEN INTERESTS (BITFINEX)
Long: 1.43 Days
Short: 2.42 Days
RELATIVE STRENGTHS
ON BALANCE VOLUME
KEY PRICE AREAS
Resistance: 5187 (28D MA), 5350, 5532 (52W MA)
Support: 5000, 4850, 4200
PREVIOUS ANALYSIS
The short timeframe charts of 5m & 4H aren’t really providing much in the way of guidance; so we need to look at the larger period charts as we wait for a decision to be made on course of action.
The 1W chart closed the previous week with a solid red body after breaching into new highs through the middle of the week. Obviously the generally accepted catalyst for this was the Tether news; however – as outlined in previous TA – it was always going to be hard for bulls to break above the 52W without revisiting lower and building a support base first.
The 1D chart also has an interesting pattern showing; with a quite long pennant current being filled in with a number of wicks. As for which direction the pennant may break; the failure of the 28D MA to hold as support probably gives as a healthy dose of bearishness. Volume is still incredibly nervous though; with no one really ready to make a move.
This is the strongest chance bears have had to regain control since the rally that has highlighted the first quarter of 2019. If the bulls manage to find a way to break out of this position; that is surely a strong setup for the rest of the year...
Bears currently have more in their favour though; so it is a safer bet to side with them...for now.
OPEN INTERESTS (BITFINEX)
Long: 1.43 Days
Short: 2.42 Days
RELATIVE STRENGTHS
- Micro (5m): Weak
- Short Term (4h): Weak
- Mid Term (1D): Flat
- Macro (1W): Hidden Bearish
ON BALANCE VOLUME
- Mid Term (1D): Falling
- Macro (1W): Falling
KEY PRICE AREAS
Resistance: 5187 (28D MA), 5350, 5532 (52W MA)
Support: 5000, 4850, 4200
PREVIOUS ANALYSIS