BTC ready for a big move down?
The daily chart seems quite indecisive at the moment, but by zooming out the weekly things look much more bearish to from here.
Clearly looks like we are in a consolidation between Weekly 200 EMA as resistance and 200 MA as support.
Also we have some very heavy resistance around 4200. Weekly 21 MA is closing in on price, currently at 4182.
The blue trendline that previously acted as support is likely to be retested as resistance.
The Stoch RSI - one of my favourite indicators - is very overbought right now. Every time this has happened we've seen a 25%+ drop.
At the least, we'll get a retest of the lower 200 MA (currently at 3400) and if that breaks, then a measured objective of the previous impulse move will take us to test 2000.
There's no clear entry signal on this trade. At the moment I'm finding entry signals difficult to follow and finding anticipation of market flow a better strategy. Timing is incredibly difficult if a level breaks, a 10% move could happen in within a 15 minute period and I'm not in a position to watch the charts all day right now.
Short term there is a possibility of another spike up to 4100 so keep your leverage and SL wide. I'll be laddering in shorts at the following levels:
3780 (already open)
3898
4075
I've opened one at 3780 because I get FOMO otherwise. The number of times I've waited for a retrace only for the market to shoot off without me is ridiculous. This way at least I have some skin in the game.
Daily Chart
Clearly looks like we are in a consolidation between Weekly 200 EMA as resistance and 200 MA as support.
Also we have some very heavy resistance around 4200. Weekly 21 MA is closing in on price, currently at 4182.
The blue trendline that previously acted as support is likely to be retested as resistance.
The Stoch RSI - one of my favourite indicators - is very overbought right now. Every time this has happened we've seen a 25%+ drop.
At the least, we'll get a retest of the lower 200 MA (currently at 3400) and if that breaks, then a measured objective of the previous impulse move will take us to test 2000.
There's no clear entry signal on this trade. At the moment I'm finding entry signals difficult to follow and finding anticipation of market flow a better strategy. Timing is incredibly difficult if a level breaks, a 10% move could happen in within a 15 minute period and I'm not in a position to watch the charts all day right now.
Short term there is a possibility of another spike up to 4100 so keep your leverage and SL wide. I'll be laddering in shorts at the following levels:
3780 (already open)
3898
4075
I've opened one at 3780 because I get FOMO otherwise. The number of times I've waited for a retrace only for the market to shoot off without me is ridiculous. This way at least I have some skin in the game.
Daily Chart
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