- Bitcoin falls as expected. Technicals still suggest the anticipated sell-off may not come just yet.
- Ethereum price shows exhaustion, but placing a short could be a risky play.
- XRP price continues to coil near a historical barrier. Going long would be highly risky.
The crypto market shows weakness. Although many traders are witnessing confluences to place a short entry, this thesis remains neutral/bullish until higher liquidity levels are breached, or stronger sell signals manifest.
Bitcoin price could fool early bears
Bitcoin price currently trades at $22,970 as the bearish divergence that manifested on July 29 prompts day traders to open short positions. Still, despite the clear double top pattern on the Relative Strength Index on the daily chart, something doesn't feel right about shorting the Bitcoin price just yet.
The ideal short scenario was mentioned in Monday's thesis. A breach and grab of the liquidity hovering within the $25,200 and $26,400 zone seems like a probable target for smart money operators. Thus traders should be careful of an unfolding leading diagonal that is taking place for the Bitcoin price. If the technicals unfold in said manner, Bitcoin price will perform with extreme erratic behavior. A liquidity grab towards higher targets could occur before a sharp liquidation towards $19,200. A sweep the lows event would also be in the cards targeting $17,622.
BTC/USDT 1-Day Chart