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RE: Bitcoin Technical Analysis: BREAKOUT...NOW WHAT?
Nice work Workin, it's going to take some nasty short squeeze/buying volume to break out as there is no auction north of $6500, there's a tiny balance at $6700 (red arrow) but it's likely the price would not stick there for long but would run straight for $6900.
I think the possibility of a large short squeeze is becoming increasingly probable.
Humm, I think the best case scenario at this point would be some consolidation throughout September but wouldn't mind shorts get destroyed to give the market some breathing room, this shorting Bitcoin trade is becoming a tad overcrowded.
I'd love to see it BB.
Thanks @tradealert. Always appreciate your views.
You're looking at a tether pairing and you're viewing it on a zoomed in 1 hour chart. Pull back a little, or view a 4 hour or daily, and you'll get a better idea. Remember, volume profile only shows you what you put on the screen.
Anyway...I wish it was like that across the board with other pairings like USD. If it was, there'd be nothing to stop it between $6,540 and $6,750. Even so..there's still not much. That's why price has recently moved so quickly past that $6,540-$6,750 zone..both up and down. As I said in the video, the problem is getting past that $6,500-$6,540 resistance.
Looking at volume profile on the USD pairing, there's much more buying/selling taking place between those 2 areas than your tether chart. Still, price has just zipped past that zone in the recent past...suggesting there's not much resistance or support at all between those 2 price points.
If price can rise above $6,540, the charts suggests a rather quick rise to at least $6,700. From there, it should find descent resistance. A break above $6,750 suggests price may retest the prior swing high.
I think we both agree here @workin2005, the volume well you see on the daily is the same I charted on the hourly (albeit the ellipsis I drew doesn't cover it entirely) and we were both correct to identify $6500 as a resistance zone.
As for me charting on the Binance BTC/USDT chart, I chose it because it's the 3rd most traded Bitcoin market after Bitmex (derivatives) and BitForex (new market so not much price history) and I was always told to do TA on the most liquid market :)
Oh..maybe I misunderstood. Sorry if I did. I couldn't agree more on that $6,500-$6540 resistance. I thought you were calling resistance between $6,540-$6,750....the area price as zipped through both up and down. Again..my bad if I misunderstood.
As far as the volume profile, here's what I'm referring to...
If I zoom in on the hourly, it looks like a ghost town between $6,500-$6,700.
Example:
However, if I zoom out to cover more time (regardless of it's the hourly or daily chart), you'll get a little better idea of the action that's taken place in that zone over the past 6 weeks instead of just 2 weeks. That zone still looks weak, but it's not the ghost town it appears to be when zoomed in.
Example:
Of course you don't need volume profile to see it...the candles paint a pretty good picture. But it's certainly a nice feature to use. I've actually fallen in love with VP...even though it's making me lazy. lol
As far as using Binance BTC/USDT due to overall volume...yeah. That's not a bad call. I use Bitfinex as the volume is decent and it factors in shorts. (Notice that long wick on Sept 2nd that wasn't visible on Binance/Coinbase/etc).
Still, it doesn't really matter unless you're scalping on small timeframes...which is where I tend to make the most in this market.
Here's hoping we soon get an influx of new money. I'm waiting for a stable trend that isn't down. lol....I always feel like I'm cheating by shorting the market.
Anyway...hope I didn't come across as a condescending ass earlier. I was responding quickly to things on many different social sites and didn't put much thought into how it might have sounded. I'm not "that guy" who always has to correct everyone. I guess you caught me at a bad time. Sorry my friend.
Not at all dude, this is not Reddit and I have nothing but respect for your work :)