BTCUSD at bottom of channel. Time for another long!
Updated
BTC has collapsed through some vital support levels as we expected it to do (earlier than expected I must say).
It has been showing very weak price action over the last couple of days and a correction was due. When the price goes down, we look for longs and vice versa.
BTC is currently at the bottom of the channel but the momentum has been strong due to the downside momentum.
Although we currently find ourselves at a daily + golden pocket (highlighted in blue), I think we'll have another small drop before we start making our way up to at least the middle of the channel again. At the very least, this will provide a bullish setup.
A couple of things I am waiting patiently for:
- Momentum to curl back up a bit with buyer interest.
- Bullish divergence on the 30m - 2H TF on the RSI + CVD.
- Touch of the bottom of the channel.
Support for the long trade:
Trade:
ENTRY: 43.8 - 44k
TAKE PROFIT: 1 - 46.7k (will look at taking profit (2) when we get there but presumably the top of the channel and top golden pocket around 49.5k)
INVALIDATION: 43k (We can also expect an SFP of the lower wick but I will analyze the price when we get to the bottom of the channel)
*NFA*
Let me know if you agree, disagree :)
It has been showing very weak price action over the last couple of days and a correction was due. When the price goes down, we look for longs and vice versa.
BTC is currently at the bottom of the channel but the momentum has been strong due to the downside momentum.
Although we currently find ourselves at a daily + golden pocket (highlighted in blue), I think we'll have another small drop before we start making our way up to at least the middle of the channel again. At the very least, this will provide a bullish setup.
A couple of things I am waiting patiently for:
- Momentum to curl back up a bit with buyer interest.
- Bullish divergence on the 30m - 2H TF on the RSI + CVD.
- Touch of the bottom of the channel.
Support for the long trade:
- Daily level at 43.8k
- VAL 43.6k
- Golden pocket of the channel.
- Bottom trend line of the channel.
- [currently] 4H - 8H hidden bullish divergence (keeping in mind we need to remain above the last wick down)
Trade:
ENTRY: 43.8 - 44k
TAKE PROFIT: 1 - 46.7k (will look at taking profit (2) when we get there but presumably the top of the channel and top golden pocket around 49.5k)
INVALIDATION: 43k (We can also expect an SFP of the lower wick but I will analyze the price when we get to the bottom of the channel)
*NFA*
Let me know if you agree, disagree :)
Note
Here is the golden pocket fib + the 786 I am referring toNote
Here are my key levels for this tradeNote
This is what my entry would look likeNote
So BTC decided to nose dive today. I see we've also taken the SFP of the lowest wick to the left on this chart.. As mentioned in my comments above, I waited for 30m - 2H bullish divs but RSI kept dropping. My rules were not met so no longs were taken.
I will wait for the momentum to recover a bit and then update!
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