Crypto Short

Many traders will find abundant similarities between two crashes and may say that the history will repeat itself. However, we as a trader mostly overlook things. Here is another important aspect that we have overlooked. Bitcoin first drop during high volatility days defined the support as indicated in red ellipse. This held true in 2014 and was never broken. This also holds true to-date as 6K support was briefly touched but was never broken for weeks. Bitcoin rebounded at least three times from this support and this will be the fourth time if it does again. If this analysis or view is true, then 6K is our final bottom.

This is the fourth time bitcoin is touching the 6K and has developed a near 5800 bottom. The price had a free-fall from 8500. However, when it came down to the 6K support, it behaved like it is close to a gravitational pull. Instead, it slows down. Take a look at the price and volume actions. Especially, the OBV and PVT. Both hold a key when it comes to the reversal pattern recoginition. When every one is bearish, you need to look at some out-of-box tools or utilities that can help you in defining a position. When we touch the support 4th time, it simply means that the support is weak. However, this doesn't mean that a rally cannot begin. Every one expects the bitcoin to reach 2K so that it comes a good buy. Ask yourself, will you buy it? Most probably not. Here is a capture of some key divergences: Regular Bullish Divergence against RSI OBV - Hidden Bullish Divergence Regular Bullish Divergence against PVT With these divergences in-hand one should think about accumul...