BTC bullish divergence

in #bitcoin6 years ago

One more quickie before we head into the weekend.

I may get in on this setup with a relatively tight stop - the whipsaws seem to be far less drastic near support as opposed to the gnarly ones up at the top of the box near resistance.

2018-07-20 309pm BTC.png

Using the 1-hour chart, a reasonable case can be made that we're still in this bullish box continuation pattern. The ascending triangle has been invalidated, if it was ever valid in the first place. Right now bitcoin is sitting near support around 7300-7350, the hourly just closed as a long-legged doji (indicating possible trend reversal as supply/demand even out), and hidden bullish divergence is forming between the price and stoch. This could be a fun play with a high ceiling, especially if bulls want to re-test the day's high.

Alternatively, price could be forming a bear pennant indicating a decline of ~150 points. I think the support is stronger than the bearish pressure but it would be wise to check in over the next few hours for additional clues. Weekends are always better when you're riding a bull.

BitMex referral:

https://www.bitmex.com/register/UhBYnD

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