Crypto Short

Since June 24 Doji / pinbar (actually on Bitfinex) was perhaps the decisive day followed by the engulfing move. Since then this support zone 6150-5800 remains solid and BTC mostly trades above despite two failed rallies forming a descending triangle. Current low volatility and price settling in a support zone 6150-6800 is an indication that most likely the rally will follow-up to put a Higher High and thus if the momentum fails, bears will have achieved enough momentum to break down the support. Given the momentum (Higher Higher and Higher Lows) continue, the rally will continue and BTC may test 10K, 13 and ultimately 20K in coming months.

Throughout the year, I have been following just one Fibonacci time zone prediction that worked very well. Whenever BTC arrived closer to these zones, something has to happen for some reasons: (a) Previous trend was losing steam (b) Extended cosolidation June 24 was the best example though when BTC closed below support (6K) & recovered in the following day. Thus, the swing zone prediction worked very well and the declining trend put a rally that gave significant profits. The rally failed an till Oct 18, the zone held the support & never closed above 6135 (on GDAX). If you see my previous analysis, whenever BTC lands on the support, I kept on finding evidences of volume/momentum divergences. What do we see now is that BTC holds the support with regular and hidden divergences against the volume and momentum indicators. Recent events, drop on Oct 11 to 6135 & breakout on Oct 15 of 6800 both turned fake. Here is a chart annotating the four fake drops, which held the ...

Klinger Oscillator (KO) is perhaps one of those oscillators in trading that will compensate the price-volume trend. Although there is a PVT (Price-volume Trend) but KO is an add-on feature. For Bitcoin, you can use this as well but for now I am going to put a special case for Q4-2018 here. BTC is at the verge of breaking the bearish descending triangle (Lower Highs and a flat bottom). However, KO tells a different story. In the chart below you find these trends: Jan to Sep a lower high setup - BEARISH Jan to Sep a lower low setup - BEARISH Jan to Jun a higher low setup on KO Indicator, confirming a regular bullish divergence . Jun to mid Aug a hidden bullish divergence, confirming a regular bullish divergence. Failed rally ahead but KO continues the bullish momentum i.e. higher lows while approaching the end of triangle.  What will happen next? It is indicated here in my post (investing.com). Crypto Short: We enter in Q4 with a solid floor defined by descending...