Case for bearish ending diagonal
Updated
I have my doubts about the recent bullishness. It's hard to make the case that this is a perfectly flat top triangle which would be bullish.
Overall the top of the triangle has been getting nudged upward as it fills in which means there isn't necessarily a huge chunk of buy stops waiting above it to explode upward when it breaks the top of the triangle.
Instead the stops get cleared out gradually each time it makes a new high. However on the down side all the sell stops have been accumulating on the lower swings and this creates the bearish ending diagonal triangle shape. I will probably scalp long on the short term but am treating it only as a capitulation 5th wave.
I think there's a pretty good chance that it will drop lower. Basically retesting the x point around 5800 would make the price action look healthier for a move upward.
I actually have a small scalp long from a trade earlier today which I have mostly scaled out of and am letting the final portion run but I don't think this particular trade is the one that's going to the moon.
Overall the top of the triangle has been getting nudged upward as it fills in which means there isn't necessarily a huge chunk of buy stops waiting above it to explode upward when it breaks the top of the triangle.
Instead the stops get cleared out gradually each time it makes a new high. However on the down side all the sell stops have been accumulating on the lower swings and this creates the bearish ending diagonal triangle shape. I will probably scalp long on the short term but am treating it only as a capitulation 5th wave.
I think there's a pretty good chance that it will drop lower. Basically retesting the x point around 5800 would make the price action look healthier for a move upward.
I actually have a small scalp long from a trade earlier today which I have mostly scaled out of and am letting the final portion run but I don't think this particular trade is the one that's going to the moon.
Note
The buy zone on the chart also lines up with the bollinger bands lower line which would be a logical tag area. It really does not make a lot of sense that BTC is going to power to 20k from here without ever touching the lower band in the middle of a global pandemic, so I am waiting for better prices.Note
I am trading in and out of the small scalp long and right now my order brackets are to exit at break even on the down side and to take full profit and exit the trade entirely at just under 7300. I consider this area to be a euphoric 5th wave capitulation region and basically don't want to hang around for it to reverse and dump below.Note
Scalp hit target, I am totally flat in that account and expecting a reversal sometime this week
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