Quick Sunday bitcoin update - the path to 3500
Alright guys, this is a quick one.
As you know, I believe for a number of reasons that the we will put in a bottom at the 3500 level. I'm very open to the fact that I could be wrong, and that bottom could be at one of the other support zones between the current price of 7000 and my target of 3500. However, we are still on track per my analysis several weeks ago and until I see conclusive evidence to the contrary, I'm sticking to my guns and will trade as if the bear trend is on.
In doing so, my routine now consists of trying to prove my theory wrong. If it's right, no further action is required - I will keep my short order open and continue to ride. If it's wrong, then I'll cover and go long.
What I'm watching for in the immediate future is a reversal of the leg down beginning with the swing high (on the daily chart) from July 24 at 8506. According to my prior analysis, this leg should continue to push further down to the 5600 zone followed by a small relief rally and then the final plunge. However, if the bulls can take over and push the price action out of the falling-wedge, breaking through the resistance at 7700, it could provide strong evidence that the bear trend is over.
The Sunday candle is coming to a close and unless there are some last-second theatrics, it looks like it will close as a doji, indicating a possible trend reversal. The volume isn't particularly high on the Sunday candle, but it has been increasing through the last week. Bitmex broke a single-day volume record earlier in the week and then broke it again a few days later.
Additionally, if Monday's candle closes above Sunday's then there is a very good chance we will see hidden bullish divergence forming between price and stoch. As we all know painfully well, Monday's tend to be bloody so I'm skeptical the divergence will confirm, but it's certainly on my radar.
Set your price alarms tonight, could be a big move incoming. If you have any questions or comments please feel free to reach out to me or leave a comment! And if you find any of this analysis helpful, see below.
Stay safu, fam.
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BTC: 34DsCV6m9cHez73nYDzVUk6D82yiqhKrWg