Tomáš Hančar
3-month aSOPR bear divergence update: It's playing out
Looks like the 3-month bear divergence on aSOPR I've outlined on Jul 13 is playing out. That said, the metric itself is fast approaching the "1" equilibrium line, which means that we may see a bounce as soon as a convenient technical structure is reached. Should we close this week below the key 2020 yearly close of 28 980, I'd be looking for 27 700-ish as the next best line of support, should that get breached, 25k-ish is the next logical technical structure to be looking at. As far as current uptrend in Bitcoin since the beginning of this year is concerned, please note a potential confluence of its supporting trendline with the 27,7k mid-range area. That said, I usually don't pay that much attention to trendlines (I prefer horizontal levels instead) and would like to note that a weekly close below 28 980 warrants both 27,7k & 25k as potential technical targets. Should we close this week back above 28 980, either further sideways chop or a continuation of the current uptrend is easily warranted in such a case. aSOPR holding support at "1" or, better yet, "bouncing" off of it warrants anything at least to the 32 384 liquidity pocket area, and possibly beyond, especially if aSOPR's current high of 1,0235 is breached as a lagging confirmation... The "original" Jul 13th QuickTake URL for reference: https://cryptoquant.com/insights/quicktake/64b0053dd3b747540365ebb0-aSOPR-3-month-bearish-divergence-warrants-caution-patience