BTC Update! Loss of 4 Hour Higher Lows and Higher Highs!
Good evening everyone!
Jumping off last chart, I was continuing to ride the higher lows and higher highs BTC was setting for my personal trade. Each time a new higher low on 4 hour chart was established, I was comfortable moving my stop loss to just underneath that level just to protect profits.
So we were watching as BTC was pushing above the original box I've had going for weeks and I am still keeping this box relevant which I will explain shortly.
We broke out of the top which had been a high at $6493 and bulls took it to $6540. Here is where my last chart left off and I was looking for some brief consolidation and then a push higher. We saw the consolidation down and found some support for several hours along the top of the box.
And then it failed and we fell to $6441. This was my first red flag since we did not see the continuation to keep us above the box. The positive was this was still a higher low compared to our prior level of $6372 so all was fine with my personal trade and stop loss. I moved my stop to just under $6441 as the bulls began moving up and topped at $6490. Here was the second red flag. We were now forming a Lower High on the 4 hour chart. I now double checked stop losses to make sure I was prepared for the lower low to also come. And sure enough it came and we saw a flush down as traders utilized the stop loss area. BTC initially bottomed to $6388 here but then we saw brief consolidation for the bears and another leg down.
Currently support from this most recent drop sits at $6305. I am personally back to all cash and locked in my profits. Small overall tho as I was hopeful the bulls could give more continuation above $6500 to get a test up towards $6800 but bears just weren't having it. So 4 hour chart has shifted from its higher lows and higher highs to its lower highs and lower lows. I'll be cleaning up this chart over weekend but gave an idea of stop loss areas based on prior higher lows and now we watch to see if bulls will hold $6305 as well as $6293 for two recent lows. I am personally primarily interested in 4 hour chart for scalp trading. Longer positions, you'd be zooming out towards the daily or weekly chart for trades. So same as always, protect that capital. Recognize where stops should be placed in order to protect profits as well as simply recognize a change in chart patterns. I won't personally be interested on a technicals side until the bulls can show us a higher high and higher low on the 4 hour chart. Depending on when/how this occurs, it could mean rebuying at higher than where I exited and personally fine with that. As price of BTC is irrelevant to me, it's all about low risk entries and locking in profits as a trader. If $6300 area fails and we do head lower, I'll again be looking back down to our key support areas at $6200 and $6000 psychological which would also be an area of interest for low risk entries.
Just My 2 Sats!
Jumping off last chart, I was continuing to ride the higher lows and higher highs BTC was setting for my personal trade. Each time a new higher low on 4 hour chart was established, I was comfortable moving my stop loss to just underneath that level just to protect profits.
So we were watching as BTC was pushing above the original box I've had going for weeks and I am still keeping this box relevant which I will explain shortly.
We broke out of the top which had been a high at $6493 and bulls took it to $6540. Here is where my last chart left off and I was looking for some brief consolidation and then a push higher. We saw the consolidation down and found some support for several hours along the top of the box.
And then it failed and we fell to $6441. This was my first red flag since we did not see the continuation to keep us above the box. The positive was this was still a higher low compared to our prior level of $6372 so all was fine with my personal trade and stop loss. I moved my stop to just under $6441 as the bulls began moving up and topped at $6490. Here was the second red flag. We were now forming a Lower High on the 4 hour chart. I now double checked stop losses to make sure I was prepared for the lower low to also come. And sure enough it came and we saw a flush down as traders utilized the stop loss area. BTC initially bottomed to $6388 here but then we saw brief consolidation for the bears and another leg down.
Currently support from this most recent drop sits at $6305. I am personally back to all cash and locked in my profits. Small overall tho as I was hopeful the bulls could give more continuation above $6500 to get a test up towards $6800 but bears just weren't having it. So 4 hour chart has shifted from its higher lows and higher highs to its lower highs and lower lows. I'll be cleaning up this chart over weekend but gave an idea of stop loss areas based on prior higher lows and now we watch to see if bulls will hold $6305 as well as $6293 for two recent lows. I am personally primarily interested in 4 hour chart for scalp trading. Longer positions, you'd be zooming out towards the daily or weekly chart for trades. So same as always, protect that capital. Recognize where stops should be placed in order to protect profits as well as simply recognize a change in chart patterns. I won't personally be interested on a technicals side until the bulls can show us a higher high and higher low on the 4 hour chart. Depending on when/how this occurs, it could mean rebuying at higher than where I exited and personally fine with that. As price of BTC is irrelevant to me, it's all about low risk entries and locking in profits as a trader. If $6300 area fails and we do head lower, I'll again be looking back down to our key support areas at $6200 and $6000 psychological which would also be an area of interest for low risk entries.
Just My 2 Sats!
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