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Bitcoin at 6K - Fourth time and again Price-Volume Aren't in Sync

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:
  1. Regular Bullish Divergence against RSI
  2. OBV - Hidden Bullish Divergence
  3. Regular Bullish Divergence against PVT
With these divergences in-hand one should think about accumulation not shorting the support. We only short given:

1) A new lower high is developed, OR

2) BTC breaks through the last low.

Otherwise, a short-squeeze will happen again, and much of the margin will disappear. All the best!




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