Rally loosing steam, nearby supports weakening and big gap down
Updated
Bitcoin
Rally looks to be loosing momentum,
The last bounce off Cloud support (3Hour) is lacking follow-through, and I don't think that we can afford consolidation at these levels for very long without the weak supports failing and price looking for bulls at 6350-6450.
We could see another, longer consolidation period at 6000-6400 until interacting with the daily cloud...
I think there will be one more opportunity for a run up, but daily cloud resistance is too strong right now to allow 6600-6800+ prices to hold without another leg down.
Unfortunately , another re-test of 8H cloud bottom would put price deep into 4H cloud, and completely underneath 3H cloud, meaning that the resistance to come back up for another rally will be much higher than it was in prior 8Hour cloud bottom bounces.
Like I said in a previous idea, the chance for price to break through the Daily Cloud bottom from underneath in a situation like this is so extremely unlikely that it's almost a no-brainer to set sells up along the daily cloud bottom and build a short position from the top of every daily candle that tries to push through.
Rally looks to be loosing momentum,
The last bounce off Cloud support (3Hour) is lacking follow-through, and I don't think that we can afford consolidation at these levels for very long without the weak supports failing and price looking for bulls at 6350-6450.
We could see another, longer consolidation period at 6000-6400 until interacting with the daily cloud...
I think there will be one more opportunity for a run up, but daily cloud resistance is too strong right now to allow 6600-6800+ prices to hold without another leg down.
Unfortunately , another re-test of 8H cloud bottom would put price deep into 4H cloud, and completely underneath 3H cloud, meaning that the resistance to come back up for another rally will be much higher than it was in prior 8Hour cloud bottom bounces.
Like I said in a previous idea, the chance for price to break through the Daily Cloud bottom from underneath in a situation like this is so extremely unlikely that it's almost a no-brainer to set sells up along the daily cloud bottom and build a short position from the top of every daily candle that tries to push through.
Trade active
roughly half of my limit orders have been filledNote
All limit orders filled, another wick off of 8Hour cloud top, we are about to see price exit the 6 hour cloud top, which is something I did not take into account in my original analysis:
and a bullish perspective:
Order cancelled
Limit orders to close short flat filled. Zero loss on trade, currently flatNote
Thank goodness I closed the short! Bullish signals came quickly in succession and price shot up quickly after exiting the 6Hour cloud!
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