Still Downward Pressure; Any Decent Move Up Likely a Bull Trap!
As pointed out in this video, we are currently in a race with the White Energy in the 2-Day and the Red RSI in the 4-Day. We have approximately 15 hours remaining in the current 2-Day and 4-Day time frames. At which point I'm anticipating the Red RSI in the 4-Day to win the race to the 50 level before the White Energy in the 2-Day can "close" above the 50 level. Which means we will ignore the White Energy in the 2-Day and turn our focus to the White Energy in the 4-Day; as well as the Red RSI in the 8-Day Time Frame. We "must" conclude we are still in downward pressure until the White Energy can win a race to the 50 level. Does this mean we ignore the White Energy and the Green Line in lower time frames; such as the 12h, Daily and 2-Day? No, because we can look for clues in those time frames to determine if our downward pressure may come to a close and reverse to sustained upward pressure before the race between the White Energy in the 4-Day and the Red RSI in the 8-Day comes to a head.
It's also quite obvious we continue with this downward pressure at least to mid September because of current development with the Red RSI in the 4-Day likely to win the race with the White Energy in the 2-Day. How long into September or October this downward pressure progresses remains to be seen. We'll know more by mid September. In the meantime, I would be very hesitant to create a margin long with low leverage just yet. One must also be hesitant to open a margin short position. If I were given a choice between the two and I was forced to choose one or the other, I would choose margin short on low volume. Where could the price potentially fall to? Well, the next stop would be the 50-EMA in the Weekly in my opinion; similar to what was done in August, 2016 going down to the 50-EMA in the Weekly during the BitFinex hack. It's possible it could fall down only to the 0.786 FIB ReTrace between $9,508 and $9,610. However, judging by how many margin longs compared to margin shorts we currently have on BitFinex; I would not be surprised if we fell deeper to around $8,2xx.
Appreciate your continued support and as always... Stay Awesome!
David
It's also quite obvious we continue with this downward pressure at least to mid September because of current development with the Red RSI in the 4-Day likely to win the race with the White Energy in the 2-Day. How long into September or October this downward pressure progresses remains to be seen. We'll know more by mid September. In the meantime, I would be very hesitant to create a margin long with low leverage just yet. One must also be hesitant to open a margin short position. If I were given a choice between the two and I was forced to choose one or the other, I would choose margin short on low volume. Where could the price potentially fall to? Well, the next stop would be the 50-EMA in the Weekly in my opinion; similar to what was done in August, 2016 going down to the 50-EMA in the Weekly during the BitFinex hack. It's possible it could fall down only to the 0.786 FIB ReTrace between $9,508 and $9,610. However, judging by how many margin longs compared to margin shorts we currently have on BitFinex; I would not be surprised if we fell deeper to around $8,2xx.
Appreciate your continued support and as always... Stay Awesome!
David
