coinquora.com
- Crypto analyst Scott Melker, The Wolf of All Streets, published his take on BTC.
- Melker notes that there’s a potential bullish divergence, coming out of oversold.
- He also mentioned that he is waiting for a retest of the 40k – 42k area.
Prominent technical analyst Scott Melker, dubbed as The Wolf of All Streets, recently shared his analysis on Bitcoin’s price action. He published a series of tweets to see how BTC may perform in the near future.
Chart 1:
$BTC
Ascending channel breakdown with a dip into 4-hour supply was likely, as I discussed on my video and in the newsletter yesterday.
This is a reasonable place for a bounce if we are going to see only a small correction. pic.twitter.com/BLxKfR7iSm
— The Wolf Of All Streets (@scottmelker) August 25, 2021
In the tweet above, Melker talked about the ascending channel. He noted that it’s a reasonable area for a bounce in case the correction will be small. For those who are not familiar with the ascending channel is the price action enclosed between upward sloping parallel lines.
Chart 2:
$BTC Hourly
Potential bullish divergence with RSI, coming out of oversold.
Would confirm with a clear elbow up on RSI on the next close. So we wait.
Low time frame, low strength signal, but compelling since it coincides with support. pic.twitter.com/rxCJbNNxgg
— The Wolf Of All Streets (@scottmelker) August 25, 2021
In the second chart that Melker shared, he showed an hourly analysis of Bitcoin’s Relative Strength Index (RSI). He noted that there may be a potential bullish divergence in the RSI. This means that there may be a rising momentum that can be used by traders to signify taking new long positions.
Chart 3:
$BTC Weekly
I am still watching for a healthy retest of the 40-42K area as support, which would confirm the strength of this move for me. Weekly chart needs to cool off, that would be a reasonable spot.
May not get there, but that’s a heavy load up zone for me if it does. pic.twitter.com/lBrPJb9tXd
— The Wolf Of All Streets (@scottmelker) August 25, 2021
Lastly, Melker shared that he is waiting for a healthy retest of the 40k – 42k area. According to him, this will convince him of the strength of the price movement.