11.8 BTC, ETH Evening Analysis: Divergence in Volume Weakens Market Bulls
Last night, it was noted that Bitcoin's daily volume was diverging, resulting in minimal fluctuations. The strategy focused on going long on Ethereum, yielding a space of two hundred points and a 400% return. How about that? This wave was quite profitable. From Ethereum's intraday performance, it constantly spikes upwards, but the trend is very weak, especially as the Bollinger Bands on the 4-hour and 1-hour charts begin to narrow. Tonight, there is a high probability of spiking and consolidating at high levels, continuing until the weekend, which aligns with the typical weekend market behavior, with not much volatility expected.
Looking at BTC from the 4-hour chart: the trend line continuously climbs, yet the spike points above are lower each time at 75656, 76420, 76900. The short gaps between these points indicate that bullish volume is diminishing. Normally, the third spike should exceed the gaps of the previous two for a strong upward movement. Therefore, a rebound will be shorted, with the shorting point at the highest point of the trend line at 77400. In conjunction with the trend indicators, the lowest point below EMA20 is at 74280, and other main indicators are beginning to turn downwards. It is predicted that in the next three days, it will likely approach this level, and if it breaks below, a new downward trend will form in the short term. However, this does not affect the bullish outlook on the monthly chart or for those holding spot positions. Due to the divergence in larger volume levels, auxiliary indicators are temporarily disregarded. In terms of price action analysis, this falls under a large three-push structure, with no more than five pushes, and in the case of weakening momentum, it typically ends after three pushes.
BTC Evening Strategy: Short between 77200-77500, targeting around 75800!
ETH Evening Strategy: Short between 2965-2980, targeting around 2905!
