Quick Update:
I'll post something more detailed tomorrow, just a few basic thoughts here. $BTC did end up hitting the zone I previously mentioned as being an ideal top, currently bouncing off of it.
Fairly significant confluence of resistance in this region.
128 Day MA has proven to be significant almost every time it's been tested for years. Base of prior consolidation zone. Price target on setup has also just been hit. Resistance trend line as well.
On the other hand, PA on BTC certainly looks alright for the bulls. We've seen a gradual stair stepping upwards, with prior resistance consistently becoming support. Typically a weak response to capitulation is bearish - though of course that changes if it's sustained.
Though I'm still mid term bear biased, I'd happily enter long if a setup manifests on $BTC. Currently looking at both longs and short in alts - will give a proper update and explanation of my thoughts there soon.
Another significant thing to note is what has been happening with margin positions on BFX. Shorts have rocketed up more than 10k units in less than 4 hours. As far as I'm aware that's a record. At the same time, there's been a bull whale accumulating with hidden orders on BFX.
Though it's hard to draw any rock solid conclusions from the aforementioned information (as manipulation could well be at play), based on information available this is bullish. Simple reasoning; shorts have to cover. Shorts = unrealised buying pressure.
In any case, I'm not necessarily viewing this rapid increase in the same light as I'd view the normal fluctuations in margin positions. This is for a number of reasons that I'll cover in the near future.
In any case, the total market cap chart is still quite far from bullish. RW/bear flag style PA which is currently testing prior support (now resistance). There are similarities between current PA and that which occurred in July (pictured in the chart).
Despite a number of significant pumps, total #altcoin market cap chart remains relatively subdued.
Though I'm still bear biased, I'm looking to hedge my bets by trading long on strongest coins and short on the weakest. Will extrapolate further soon.
That's it for this update, just a few basic observations. I remain bear biased mid term though I'm willing to change my mind if certain conditions are met.
Stay safe out there!
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