On Balance Volume
Many analysis look for or divergences and you can also put some moving averages on the to see what is going on for the last so many periods. Here I have the 10, 20 and 100. Much like any moving averages crosses can provide useful signals. This situation is pretty . Price has to go a long way to the upside for the OBV to get above the 100 long enough for the 10 and 20 to get above the 100 again and complete a stack.
Significant rallys are possible with the OBV below the 100 and the OBV, 10 and 20 can do a lot of braiding and changing of position but large dumps are very probable afterwards.
Volume Profile Visible Range
Right now price is stalling at this node. It isn’t particularly large but it does coincide with previous support around %49.5k and the 0.786 fib retracement level (not shown). The center of the next node of support is lower than many analysts I listen to are calling at about $35k To me that isn’t a solid target despite it being the top of the Value area as both major I see that could provide support are way benign that.
The is showing a lot of hidden Divergence. The main chart does a decent job but below is the settings developed by Mr. Asprey after he did some tinkering. I have split the histogram and signal line into two different charts to view the divergence more easily. Both are very divergent. This is important because hidden divergence is the best indicator that a bull trap is in play.
I was using hidden divergence when I was predicting a bigger spill than most prior to the dump in early May on the . Once again the chart is the MACD-AS with the signal and histogram separated. It does not take a lot to rip a uptrend to shreds.
Lots of things look . On chain metrics look with the Hash ribbons flashing a buy. People looking at commitment of traders also see a lot of buy interest. Lots of coins have been taken off of exchanges. All these things are generally fundamentally . But the situation does not seem to back up some of the fundamental bullishness. The is also in a vulnerable situation. All this makes analysis complicated. We might see a vicious sell off and a rapid rebuy like the Covid 19 dump. We might see lots of people loose interest in BTC specifically while other coins stay strong.
Truth be told I am pretty uncomfortable with the disagreement in the charts and the . Makes me think I am missing something and I don’t like it. But right now it seems to be a bad time to be recklessly long to me. I do have a small position on short with a low level of leverage.
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