Bitcoin dipped yesterday, but quickly recovered. Now it is continuing to show further weakness.
On the positive side, RSI is at 50, which is considered support and if it can close in the current area, then hidden bullish divergence is possible – a higher low on price and lower low on RSI. That would require a perfect close, so I am not considering it for the moment.
My bias is still for further downside to gain fuel for another eventual move up.
Injective Ready For Another Leg Up?
INJ/USDT 4-HOUR CHART
Injective has been range bound since April, between roughly $9.97 and $5.60. You can see that price is currently consolidating in a bull flag or descending wedge right under the top resistance of the range. There was a nice volume spike pushing price to the range highs, and now we see decreasing volume as price floats down – that is the definition of bullish consolidation.
There is nothing to do here yet, but price consolidation under resistance often leads to a breakout.
There are a few ways to play this – some will set an alarm on the descending blue line and buy the breakout. That’s risky. Others will buy a retest of the blue line after a breakout – slightly less risky. The “safest” way to approach it is to wait for a break above the range and close above, and even a retest of the range highs.
Set your alarms on this one and keep it on your list.