Daily Report – Bitcoin and Market Update (November 07 2020)
Middaily sessions locally are showing signs of uptrend weakness in form of spinning top candles. Momentum is heavily overbought, obviously. Fan principle of accelerating trendlines (see current chart 12H and the cheat sheet attached below) prove that current uptrend is unsustainable and in the matter of few next 12H sessions BTC/USD would enter in short-term correction. Remember that we have just confirmed long-term potential to go way beyond ATH of 2017 so any correction that appears according to TA principles is a buying/compounding opportunity. Shorting in bull market will always end up badly. In this chart one could also notice orange curves which are VWAP averages anchored at the beginning of each steeper trendlines. These averages provide you with volume weighted price essence, breakdowns of which are going to be the most meaningful. Notice how they also accelerate with steeper and steeper angle.
Fear/Greed index at 88-90 points and it’s only been seen this high at ATH 2017 and June 2019 14k peak. Every time it has entered such overbought state it soon after crashed with 2-3k ranged daily candles. Onchain positive exchange flow balance with big spikes also suggest whales getting ready for dump when the trigger comes. IMO the trigger may come with US elections results in form of sell the news event. Nobody has ever gone poor from taking profits…
MTF picture shows lack of volume on the final short squeeze 14-16k. Entire volume of past weeks was accumulated inside 13-13.5k area, which was the zone that many whales opened their shorts in. I’m still expecting them to be profitable in the near future. As you know for 12H analysis, trend is technically unsustainable and nobody but gambling scalpers should long these highs IMO. In 95% of cases it would end up with sever losses and cascade liquidations. Key supports are 14100 (note insanely big market selling raindrop 15.1k down to 14.1k coming from whales, and 12500 (MA200). When spot market against USD (not usdt) tanks this much, it means whales are realizing profits and when they’re done dump initiates. Nobody has ever gone poor from taking profits…
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