Over the past few weeks, I’ve really enjoyed the occasional Sunday pumps we’ve been getting as I’ve made some very good profits trading Hive in the futures market. However, although there’ve been some pumps recently, no pump has created any highs after the last one on Monday 5th January. Since then, we’ve been since serious volatility in both directions, as price settled into a descending channel.
The long-term trend of Hive is still bullish, but we have a bearish short-term trend. As at this time, Hive has found support around the $0.46 region, bouncing off it twice in the past 7 days. It seems that this support will hold because it’s held price from declining to touch the base of the descending channel twice. The area could be considered a very strong support since both a horizontal support and the trendline of the long-term ascending channel converge at that point. If it does hold, we’re likely to keep trading in a range between this support and the upper trendline/boundary of the descending channel until Sunday when we will see a pump out of the channel.
Since it last bounced off this support, it has gone into a consolidation, trading in a 0.47 – 0.51 range. Whiles this could lead to a breakout towards the upper boundary of the channel, it could do the opposite and result in further decline towards the 0.41 region where a large fair value gap was left after the last pump.
Why I’m saying this is because if you take a closer look at what I called a consolidation/range, that very much could be an inverted cup and handle in formation. And if this is the case, the price target assuming this actually forms and plays out right would lead towards the 0.41 price I initially mentioned, which is an area to watch because aside that fair value gap, that was also where the last resistance before the pump is. This resistance is likely to turn into support if we push down there.
This point is where I plan to increase my position, as I anticipate we will have a pump a pump on Sunday. Maybe two, if the news from Trump’s inauguration pumps BTC (which is very likely).
Please let me know what you think in the comments.
Disclaimer:
This is not financial advise, simply my understanding and interpretation of what is happening in the market, and how things could play out. Do your own research and trade with caution.
All screenshots here were taken by me on TradingView.com
