Bitcoin Back Up To 5400 And Then Down
Updated
I believe Bitcoin has topped from this move, you can clearly see we have reversed of the daily 9 (as pointed out by Tone Vays, through who I discovered this indicator from), and the RSI has given us clear divergence.
My only reservation from going Short right now is the spread between Long's and Short's (bottom Indicator, red line = Short's green line = Long's). I would like to see Short's come down significantly before we make a move down, and the only way that will happen is if we see some kind of a squeeze to wipe out the leveraged Short's. I'm thinking this move will take us to around 5400 and could take several days to materialise. It's possible we go higher, but I am very doubtful we can surpass 6k which is significant resistance zones from multiple points such as the 50 week MA, and the massive base of support formed in 2018.
So how I plan on trading this is to set sell orders at 5400, and add to it if we proceed upwards from there. If we don't quite make it to 5400, then I will wait until I see an opportunity for entering a position a bit lower. Of course we could drop from here without a squeeze, but it doesn't feel like Bitcoin's ready to do this so obviously.
My only reservation from going Short right now is the spread between Long's and Short's (bottom Indicator, red line = Short's green line = Long's). I would like to see Short's come down significantly before we make a move down, and the only way that will happen is if we see some kind of a squeeze to wipe out the leveraged Short's. I'm thinking this move will take us to around 5400 and could take several days to materialise. It's possible we go higher, but I am very doubtful we can surpass 6k which is significant resistance zones from multiple points such as the 50 week MA, and the massive base of support formed in 2018.
So how I plan on trading this is to set sell orders at 5400, and add to it if we proceed upwards from there. If we don't quite make it to 5400, then I will wait until I see an opportunity for entering a position a bit lower. Of course we could drop from here without a squeeze, but it doesn't feel like Bitcoin's ready to do this so obviously.
Note
Bitcoin is approaching my sell zone target of 5400. Unfortunately there hasn't been a decline in leveraged shorts like I anticipated, so I will be only entering a small Short position in the case that we continue higher. I am still looking to add to my Sell position if we get a short squeeze up to 6k. at this point I will keep my Stop's tightly above this range.
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