BTC Update! Lower high playing out. Mnuchin Trade opportunity!
We are playing out exactly as expected off of yesterdays chart. I had outlined our box of where I'd ideally put my "bearish glasses" on and begin shorting BTC if I were a bear. I was pretty confident we'd see a lower high form compared to $11,950 and the bulls would then need to defend the low of $9857 and form a higher low in order to begin having a chance at changing this trend. I had already entered positions in low 10k and was planning to seek entry of remainder once we pulled back after our anticipated lower high was set.
We got our lower high yesterday at $11,080 and have seen a 5% pullback overnight off that with our current pullback low at $10,512. Would be great if this held as our low of the pullback but anything above $9,857 will give us a higher low.
Mnuchin Trade:
Now I did change up my strategy yesterday and made a comment in yesterdays post as Mnuchin was speaking. Those not familiar, Mnuchin is the US Secretary of the Treasury. Now I was fortunate to be able to listen live to his comments as well as be at a computer which opened me up for an interest in taking on a short term trade for a quick flip. I have outlined that in the 5 minute chart above where it was a very quick flip for profit and then back to refilling positions once our expected lower high hit and we began to pullback. With Mnuchin speaking we had a known event as it was announced shortly before that he'd speak at 2pm eastern and BTC price began to drop down. To me this was just some exiting positions in anticipation that it could be negative news. Perfectly acceptable expectation in my opinion. I was preparing with both buys on negative news (buy the dip) or buying into a pump up if news was positive or just not very negative for a quick flip of a trade. We got the latter and at 2pm Mnuchin came out and overall I'd say it was neutral comments. Essentially investors need to use caution and be educated on what they are buying into and it is highly speculative asset class and those using for illegal purposes will be caught. Overall I think that's a very fair statement regarding crypto and bulls began to step in and buy. I was with them and then immediately began scaling out of my position as I was still expecting us to form a lower high within my range since the news was not something crazy bullish that would allow us to moon shot back up. This allowed for a quick 5% flip in under an hour for profit and then reset my buys for the anticipated pullback. This is an easy example of being prepared and recognizing the news event and that often leads to some nice volatility for easy trades. I have refilled majority of the position I sold in the trade already and will hold rest for a dip closer to $10,200's just in case and ideally help bulls defend support for our higher low. If we do not dip further then no big deal and will carry on with current position in hopes bulls reverse trend and get the higher high and begin stair stepping back up.
Just My 2 Sats!
We got our lower high yesterday at $11,080 and have seen a 5% pullback overnight off that with our current pullback low at $10,512. Would be great if this held as our low of the pullback but anything above $9,857 will give us a higher low.
Mnuchin Trade:
Now I did change up my strategy yesterday and made a comment in yesterdays post as Mnuchin was speaking. Those not familiar, Mnuchin is the US Secretary of the Treasury. Now I was fortunate to be able to listen live to his comments as well as be at a computer which opened me up for an interest in taking on a short term trade for a quick flip. I have outlined that in the 5 minute chart above where it was a very quick flip for profit and then back to refilling positions once our expected lower high hit and we began to pullback. With Mnuchin speaking we had a known event as it was announced shortly before that he'd speak at 2pm eastern and BTC price began to drop down. To me this was just some exiting positions in anticipation that it could be negative news. Perfectly acceptable expectation in my opinion. I was preparing with both buys on negative news (buy the dip) or buying into a pump up if news was positive or just not very negative for a quick flip of a trade. We got the latter and at 2pm Mnuchin came out and overall I'd say it was neutral comments. Essentially investors need to use caution and be educated on what they are buying into and it is highly speculative asset class and those using for illegal purposes will be caught. Overall I think that's a very fair statement regarding crypto and bulls began to step in and buy. I was with them and then immediately began scaling out of my position as I was still expecting us to form a lower high within my range since the news was not something crazy bullish that would allow us to moon shot back up. This allowed for a quick 5% flip in under an hour for profit and then reset my buys for the anticipated pullback. This is an easy example of being prepared and recognizing the news event and that often leads to some nice volatility for easy trades. I have refilled majority of the position I sold in the trade already and will hold rest for a dip closer to $10,200's just in case and ideally help bulls defend support for our higher low. If we do not dip further then no big deal and will carry on with current position in hopes bulls reverse trend and get the higher high and begin stair stepping back up.
Just My 2 Sats!
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