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Spot volume is shown in green.
Future Volume is shown in red. 

The Bitcoin Futures Dominance indicator displays the percent value of the dominance of traded futures throughout the entire market.

Notice that the futures have remained dominate for the last 5 months, just after this ever-lasting bear trend started. Currently over 70% of the total volume in the market is futures alone.

Without separating the futures market from the BTC World Volume , it just appears that the total traded volume has increased dramatically. In many markets this is a very good sign, unfortunately that is not the case here at all. People trading futures are only trading mere contracts of Bitcoin and no actual transactions of Bitcoin are taking place. All in turn, meaning that the future traded volume does not affect the price of bitcoin.

What does affect the price of Bitcoin is the spot market. This is the buying and selling of actual Bitcoin; not contracts. The BTC World Volume indicator above shows how spot volume (green) has been plummeting since the all time high late last year. Just about the same time the futures market started its takeover.

Based on this analysis, I believe the spot market must redeem itself before there is any solid reversal for Bitcoin. However, at this time there is very little reason to trade actual Bitcoin over the futures market.
Here are just a few of those reasons:

• Volatility is dying, which is likely due to the futures market anyways. As it takes volume from the spot market that actually affects the price.
• Fees are significantly lower in the futures market. Market Makers are even paid for limit orders. This significantly beats the hefty percentage-based fees on traditional exchanges.
• High leverage. Some futures exchanges offer up 100x leverage on some currency pairs. Most traditional crypto exchanges don’t even offer 2x on the spot market.
• Bitcoin has been in a clear downtrend for over 6 months. There is no reason for people to buy and HODL at the moment.
• There is no solid news for Bitcoin. I believe a catalyst such as an ETF announcement may be necessary for Bitcoin to make a full reversal.

If spot volume ever does make a return, I believe Bitcoin may have a fighting chance. However based on this data alone I believe BTC has found itself in quite the rut. We are in desperate need of some solid news and volume .

Then again, futures are used to stabilize traditional markets, why should Bitcoin be any different?

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Reasons why Bitcoin could continue up: 

• Bitcoin had a fantastic break of the daily downward trendline . You will notice that the volume indicator showed a green candle during the breakout which confirmed an drastic volume increase. This is a very good factor to consider when differentiate a breakout from a fakeout.
• Bitcoin formed and confirmed a perfect double bottom on higher time frames. Which just happened to be on a major support level .

Reasons why Bitcoin could continue downward:

• Bitcoin has broken several downward trendlines in the past. All of which have resulted in a continuation downwards.
• Even though Bitcoin -0.13% had a volume spike at the breakout, overall volume in this market has plummeted which no signs of reversal yet.
• We are currently sitting at the .236 fib level of the current swing.

IF we fail to break the current .236 resistance, Bitcoin will likely continue down to form lower lows.

IF Bitcoin does break the .236 and forms a higher high, a larger upward correction may be possible.
IF this does then turn into a larger upward correction, the next key level to reach and break would be the .236 of the full swing.
This level sits just above 9k.

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DISCLAIMER: 
Please note I am only providing my own trading information for your benefit and insight to my trading techniques, you should do your own due diligence and not take this information as a trade signal.

The post The Power of the .236 – Bitcoin Analysis appeared first on DepthHouse Trading Indicators.

Based on this study, short term trend changes typically took place at the second level of divergence on the Relative Momentum Range Indicator. The only other acceptation for this, was the reversal from the top this last January. At that time, was so much upward momentum in the market that it took until the third signal of divergence to confirm a trend change.

Some of you will say that this happens all the time, which is true. However this typically occurs on lower timeframes. Typically the higher the timeframe, the higher the chance of a divergence signal to lead into a confirmation.

Looking at where we are now, we once again have a potential third attempt of bullish divergence forming on the daily chart .
By no means is this a signal to buy.. The crpyto market as a whole is going through an extremely bearish cycle at the moment.
However, looking closer at the chart you will see that we have potential trendline support around $420. I believe that if we hit this and the support holds, that the bullish divergence could give us some upward momentum.

Third Time’s a Charm – Divergence Study by oh92 on TradingView.com

DISCLAIMER:
Please note I am only providing my own trading information for your benefit and insight to my trading techniques, you should do your own due diligence and not take this information as a trade signal.

The post Third Time’s a Charm – Ethereum Divergence Study appeared first on DepthHouse Trading Indicators.

Shortly after seeing a negative volume spike Bitcoin plummeted, smashing through the so called meme line at ~$7000 creating nearly a -$1000 daily.

With the meme line broken many bulls are running for cover.
However with a little Trendline analysis, there is still hope for Bitcoin.
The chart above shows us sitting right below the recently broken meme line. Then just a few hundred dollars below is a possible wedge support line ~$6200.

IF we find support at $6200, it would confirm the falling wedge , which could turn into a reversal.

By taking this analysis a step further, I placed cyclic lines from the last two temporary bottoms. Based on these lines there could be a possible bounce within the next couple days. This is my first time experimenting with these so the results will be interesting either way.
Note: Cyclic Lines allow the user to set two vertical lines a specified distance apart.

Currently I am playing the small swings and waiting for a clear signal in either direction.
Unlike several of the posts I’ve came across, I do not believe the break in the meme line is the death of BTC 0.37% .
IF BTC fails to find support a the bottom of the wedge I will start to worry a little.

I hope many of you found this article hopeful, helpful and a little interesting!
I wish you all the best of luck!

DISCLAIMER:
Please note I am only providing my own trading information for your benefit and insight to my trading techniques, you should do your own due diligence and not take this information as a trade signal.

Article was taken from a post on TradingView: https://www.tradingview.com/chart/BTCUSD/tiJ7MKtM-Meme-Lines-and-Wedges/

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Before you read any further I want to state the current market state is extremely BEARISH . There is absolutely no sign of reversal yet, so buying on the support levels I have shown is extremely dangerous. Please do your own due diligence and wait for clear signs of reversal. 

This analysis is entirely based on fractals, fibonacci retracements, and price ratios.
For those of you unfamiliar with fractals, they are recurring patterns that are used to predict reversals among larger, more chaotic price movements.

This example I am using fractals to help us predict the bottom and possibly future price movement.

The fractals above are highlighted in boxes. From afar they look similar but not quite exact.
However by lowering the timeframe on the smaller fractual you will see there is a massive amount of resemblance between the two.

After noticing this, I used both price ratios and fib levels of the smaller fractal to help predict the bottom of the current downtrend we are in.
Based on that data possible support for reversal ranges from $300-$400. Which is more clearly shown on the chart above.

IF this support holds true and the fractal repeats itself, the next bull run could be Ethereum’s biggest one yet.
Zooming out on the chart above you will see my 3 major target zones. My third target being just over $5000.

Fractals are a great tool to use when it comes to trading. Especially on lower time frames.
The reason fractals are less likely to work on higher time frames is due to larger variables effecting it.
For example the ICO 16.67% -12.50% market is being heavily attacked by advertising companies and govermental regulation.
Events like this could disable Ethereums ability to gain Bullish momentum.

However, the setup is here. So we wait, and time will tell what the future holds.

I hope you all found this analysis enlightening in these very bearish times.
For those of you worried about the current market conditions, you should be, however the bottom will come in time, When is the uncertain factor.

I wish you all the best of luck.

DISCLAIMER: 
Please note I am only providing my own trading information for your benefit and insight to my trading techniques, you should do your own due diligence and not take this information as a trade signal. 

Please see our risk disclosure.

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