BTC Update! Bulls running out of steam? Equilibrium?
Here we go again. Thus far bulls have seen a very healthy move and made for a very profitable trade. I continue to hold the remaining half of my position as bulls have not lost the 4 hour uptrend.
BUT I am keeping a closer watch now so here are some things I am personally keeping an eye on.
Yesterday we were hopeful to see if $3637 would hold as a higher low compared to one below of $3437 and it did. This allowed me to move SL up to full profitable position on trade.
Bulls ran up to $4175 from there which is our current top of the bull move.
Last night we saw yet another higher low forming at $3878 which is where I am now at for new SL.
Here is where things started to turn for me. We saw a decent upper wick on $4175 top as well as the two candlesticks before. This indicates some decent profit taking to me.
We then saw a decent lower wick on $3878 so bulls are still buying that dip.
However, we then formed a lower high at $4162 and also saw a decent upper wick.
Bulls technically have a new higher low at $3896 but its so close to $3878 I tend to slide in with lower one for stop losses.
But bulls again bought that dip and now have $4098 potentially setting up as another lower high.
12 EMA on 4 hour continues to hold support so is another area I am watching to see if it caves which would then likely send us to lower lows on 4 hour.
Those familiar with my trading style, this is an equilibrium where we start setting lower highs and higher lows, tightening up the range in which we are trading. I do expect a break of this pattern likely today. If a bull break, I am personally looking to scale out and do not expect a ton of follow through as our daily chart is going to need to consolidate soon anyways.
If a bear break then I will utilize stop loss to lock in profits from the trade.
A bear break does not mean the bulls are done and simply would just zoom out to daily chart to see how much consolidation occurs. Bulls will still want to keep that bearish volume in check and allow the daily chart to comfortably form its higher low compared to our low down at $3129. All of this would be perfectly healthy but as a trader, I still want to protect profits and would rather lock those in the rebuy (ideally lower than where I sell) on the consolidation of the daily chart if that consolidation is healthy.
Just My 2 Sats!
BUT I am keeping a closer watch now so here are some things I am personally keeping an eye on.
Yesterday we were hopeful to see if $3637 would hold as a higher low compared to one below of $3437 and it did. This allowed me to move SL up to full profitable position on trade.
Bulls ran up to $4175 from there which is our current top of the bull move.
Last night we saw yet another higher low forming at $3878 which is where I am now at for new SL.
Here is where things started to turn for me. We saw a decent upper wick on $4175 top as well as the two candlesticks before. This indicates some decent profit taking to me.
We then saw a decent lower wick on $3878 so bulls are still buying that dip.
However, we then formed a lower high at $4162 and also saw a decent upper wick.
Bulls technically have a new higher low at $3896 but its so close to $3878 I tend to slide in with lower one for stop losses.
But bulls again bought that dip and now have $4098 potentially setting up as another lower high.
12 EMA on 4 hour continues to hold support so is another area I am watching to see if it caves which would then likely send us to lower lows on 4 hour.
Those familiar with my trading style, this is an equilibrium where we start setting lower highs and higher lows, tightening up the range in which we are trading. I do expect a break of this pattern likely today. If a bull break, I am personally looking to scale out and do not expect a ton of follow through as our daily chart is going to need to consolidate soon anyways.
If a bear break then I will utilize stop loss to lock in profits from the trade.
A bear break does not mean the bulls are done and simply would just zoom out to daily chart to see how much consolidation occurs. Bulls will still want to keep that bearish volume in check and allow the daily chart to comfortably form its higher low compared to our low down at $3129. All of this would be perfectly healthy but as a trader, I still want to protect profits and would rather lock those in the rebuy (ideally lower than where I sell) on the consolidation of the daily chart if that consolidation is healthy.
Just My 2 Sats!
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