Go long or go home!
Updated
This is a great spot for a long entry at ~42k
Evidence:
1) ABC Zigzag from the ATH has completed its C (100% the length of the A)
2) 41k and 43k prior price swing points are providing support, marked in pink circles
3) Intense volume levels at this price level indicate bulls are waking up to defend; compare to the downtrend volume since ATH
4) 0.382 fib level from 3k to ATH is at the same region
5) 0.618 fib level from 28k swing low to 64k ATH swing high is also at the same price level
6) Price is following the downward pitchfork's red median line quite closely and accurately, even though it wicks past, but still returns to median
7) Shorts are absurdly high. Potential for a squeeze
A good stop would be just under 41k
Keep in mind it is still possible for bitcoin to fall further till 127.2% - 138.2% fib levels at 37k - 35k. That would be my next entry point if stopped out at 40k. There, the dotted blue line provides confluence with a long term support trend line from Q4 2020
Evidence:
1) ABC Zigzag from the ATH has completed its C (100% the length of the A)
2) 41k and 43k prior price swing points are providing support, marked in pink circles
3) Intense volume levels at this price level indicate bulls are waking up to defend; compare to the downtrend volume since ATH
4) 0.382 fib level from 3k to ATH is at the same region
5) 0.618 fib level from 28k swing low to 64k ATH swing high is also at the same price level
6) Price is following the downward pitchfork's red median line quite closely and accurately, even though it wicks past, but still returns to median
7) Shorts are absurdly high. Potential for a squeeze
A good stop would be just under 41k
Keep in mind it is still possible for bitcoin to fall further till 127.2% - 138.2% fib levels at 37k - 35k. That would be my next entry point if stopped out at 40k. There, the dotted blue line provides confluence with a long term support trend line from Q4 2020
Trade closed: stop reached
Stopped out at 40k. Anticipating downward movement to 37k - 35k where I will reconsider the chart for a long position
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