BTC - Pay attention for an upward move
Updated
It has been quite a while since I have posted an idea, but when there is not much to trade or talk about, then why force it.
After BTC had entered its distribution phase with losing 50% of its ATH, we *could* now find ourselves in an accumulation phase - meaning large amounts of BTC are being accumulated by institutions and whales, reducing the overall supply and waiting to mark up the price.
This has happened so far:
> After a selling climax (huge sell off with high spread and high volume), we saw the automatic upwards rally (AR).
> We were able to identify the trading range (watch the block on my chart).
> Right now there is a good chance that we will see a few shakeouts, trying to bear trap those, who are unaware and forcing them to sell their BTC to the smart money.
> After this last point of support (LPS), BTC's price experienced a sign of strength (SOS) with a strong upward move (to 42K) and high volume, followed by a small pullback (LPS to 38K). This pullback stopped at a support level, which used to be a 4hr resistance level (at 38K).
Now, at this point you should watch carefully. A valid indication for a LPS after a SOS is diminished spread and volume. As you can see on the chart, the short pullback to 38K happened with low volume and small spread.
So, there is a good probability that after a few more LPS, BTC will move up to the next monthly level of resistance (around 45K).
This is no financial advice - Please do your own due diligence!
For transparency reasons:
BTCUSD
I am invested in PUNDIX and BTC with 1/4 of my account size. 3/4 are kept as buffer cash for buying dips.
After BTC had entered its distribution phase with losing 50% of its ATH, we *could* now find ourselves in an accumulation phase - meaning large amounts of BTC are being accumulated by institutions and whales, reducing the overall supply and waiting to mark up the price.
This has happened so far:
> After a selling climax (huge sell off with high spread and high volume), we saw the automatic upwards rally (AR).
> We were able to identify the trading range (watch the block on my chart).
> Right now there is a good chance that we will see a few shakeouts, trying to bear trap those, who are unaware and forcing them to sell their BTC to the smart money.
> After this last point of support (LPS), BTC's price experienced a sign of strength (SOS) with a strong upward move (to 42K) and high volume, followed by a small pullback (LPS to 38K). This pullback stopped at a support level, which used to be a 4hr resistance level (at 38K).
Now, at this point you should watch carefully. A valid indication for a LPS after a SOS is diminished spread and volume. As you can see on the chart, the short pullback to 38K happened with low volume and small spread.
So, there is a good probability that after a few more LPS, BTC will move up to the next monthly level of resistance (around 45K).
This is no financial advice - Please do your own due diligence!
For transparency reasons:
BTCUSDI am invested in PUNDIX and BTC with 1/4 of my account size. 3/4 are kept as buffer cash for buying dips.
Trade active
We saw a nice upwards move, followed by a shakeout - but don't be afraid. Usually these shakeouts happen to induce the public to sell their position to large operators. Next we are waiting for a sign of strength, a last point of support at a previous level of resistance (diminished volume and spread) and the take off for the price.
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