For education only.
Price (weakening, retracing)
Following on from yesterday's price action review (here), the BTC price actually reached our interim target of $8,500 (or just shy of it), but without the retracement beforehand.
BTC is now trading around the $8,000 mark and after forming a grinding price structure is showing the first signs of weakness following the rocket upwards.
This potentially sets BTC up for the retracetment we are looking for.
If BTC can pull back to $7,600, form some short term price structure and indicate a reversal, that would validate our long trade set up.
Volume (steady, some distribution)
The average trading volume (Bitfinex) is holding stready however the OBV (pink line) has moved below the shortterm rising trendline, indicating distribution (i.e. sellers) are strengthening, mirroring the price action.
Trading Strategy (Pullback, long)
We're still waiting for a decent pullback and the current price weakness may set us up for this.
A retracement to $7,600, small consolidation in the area of support (upper green area), then some reversal signal is what we are watching for.
Until tomorrow,
Bobby
(Trader)