Perfect storm of bearish indicators on BTC: is the top in?
Updated
I had a great long on BTC yesterday and managed to get a short in right at the top. Now we have the perfect storm of bearish indicators. From the Tom DeMark sequential indicator: a perfect 9 and aggressive 13, and a red 2 trading below a red 1. Shooting star doji at the top. Time to go short and look for a good exit. The Fibonacci levels will help.
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My lowest stop for 25% of my position was hit almost dead-on at the top of the pump, but I added it back at 7575 on the way down. I have taken profits on half my position at 7300. The bounce from the 7250 area was strong and it quickly established support above 7300. I will reopen if 7400 isn't broken soon. Careful traders may want to see the 7250 area tested again and proven before going long. The push above 7600 for a new high suggests bullish sentiment is holding, and so I may entertain flipping my position to long in hopes of riding it for a double top (or higher) over the weekend. If this doesn't make it to at least the 0.382 level (now at 7072) this weekend, I anticipate a correction will begin on Sunday or early Monday.
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