Medium Term View
Using the 4 hr chart, we now have a hidden bull divergence on the RSI with the local low immediately preceding the gigantic short squeeze. That's not overly significant, as the lows I'm comparing aren't overly defined for the price trend, but it does show the RSI has largely cooled off from the recovery from 6k.
I've also drawn the large iH&S. It's important to recognize the fact that it *looks* like it's forming doesn't make it any more likely to complete than if it wasn't there at all. It *will* be a valid formation *IF* the neckline (~10k right now) breaks as the volume fits it to a T - highest volume on left shoulder with relatively lower head volume that increases (largely due to crazy short squeeze) on the advance back up from the head, followed by a relatively low volume right shoulder.
Using VPVR, it makes sense that we're bouncing around this current range as we're in between two outcroppings on an overall large volume node. Note that if we *do* break out of 10k, it'll be relatively smooth sailing based on that VPVR, giving that iH&S some more confluence *IF* it plays out. VPVR also tells us, in the event 8.8k breaks, to maybe expect token support around 8.5k from the breakout of the log ATH resistance, arguably less than the 8.8k support. Wouldn't really expect it to hold. The zone surrounding 8k, however, is a strong horizontal support area (especially recently) and we could maybe see a bounce there/
Shorter term chart coming.
I've also drawn the large iH&S. It's important to recognize the fact that it *looks* like it's forming doesn't make it any more likely to complete than if it wasn't there at all. It *will* be a valid formation *IF* the neckline (~10k right now) breaks as the volume fits it to a T - highest volume on left shoulder with relatively lower head volume that increases (largely due to crazy short squeeze) on the advance back up from the head, followed by a relatively low volume right shoulder.
Using VPVR, it makes sense that we're bouncing around this current range as we're in between two outcroppings on an overall large volume node. Note that if we *do* break out of 10k, it'll be relatively smooth sailing based on that VPVR, giving that iH&S some more confluence *IF* it plays out. VPVR also tells us, in the event 8.8k breaks, to maybe expect token support around 8.5k from the breakout of the log ATH resistance, arguably less than the 8.8k support. Wouldn't really expect it to hold. The zone surrounding 8k, however, is a strong horizontal support area (especially recently) and we could maybe see a bounce there/
Shorter term chart coming.
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