The technical setups posted below use simple trend detection, support and resistance, channels, pattern and candlestick analysis. We aim for high-probability trade setups on BTCUSD and use very few indicators. All charts use BNC’s Bitcoin Liquid Index for maximum accuracy.
The timeframe for trades is 1 to 7 days, so we’ll use 4h candlesticks. Bitcoin is best traded as a purely speculative commodity on 4h+ timeframes.
This section is based on Bitfinex Long (Buy) / Short (Sell) Margin Funding Ratios
1H Active Long vs Short Volume Ratio – 2.70:1
6H Active Long vs Short Volume Ratio – 1.69:1
12H Active Long vs Short Volume Ratio – 1.44:1
24H Active Long vs Short Volume Ratio – 1.30:1
By looking at the long and short ratios we can see that there’s a balanced ratio of long and short positions. The Data shows significantly more short positions have been opened in the past hour. This may result in a short squeeze, where shorts rush to exit a losing position.
Macro Key Points
This section is an overview of news headlines or events that may affect BTCUSD.