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.
With all eyes on the Ethereum Fork debacle, this is raising concerns if BTC should