BTC - BITCOIN PUSHING THROUGH RESISTANCE! DON'T GET REKT
Updated
BTCUSD fools the bears and gains momentum. Whats next?Bitcoin broke with easy through the anticipated levels of the bears. I was saying in my older posts, that we have high odds of just shooting through the 6400$ range and the high volume range at the 6200$ level which a lot of traders looked at. I as well gave some trade ideas a time ago regarding shorting the market in this range but was always mentioning that especially after the strength of the market during the Binance hack, the probability increased a lot that we won't pull back underneath the resistance.
What is the state of the market now? Currently, we are absolutely overbought. More and more traders are getting in and the shorts are just putting fuel into the fire by getting liquidated. At some point, a pullback will come and we will probably go back to the high volume resistance in the lower 6k$ area. Right now I am looking at the resistance levels marked by the red lines.
The first one which we just crossed, is the 500DMA and should always work at resistance. In 2015 we also broke through the 500DMA, but eventually corrected 50% and dropped underneath it. The point is that is might be difficult to time the top only based on that moving average, but It might be almost certain that if we crack this resistance with momentum, we will drop below it at some point.
The other two resistance lines are a combination of fib numbers and historical resistance. If we keep pushing higher, then those areas are definitely a great place to take profit or a short position.
Regarding shorts: Be extremely careful! We are going parabolic right now and until there is no obvious weakness you should never short with leverage without a tight stop loss. Every bull market ends with a bull trap and every bear market ends with a bear trap. I think we are currently in denial. People still waiting for the dip and are bearish biased. The short/long ratio is inverted, with way more shorts than longs. This implies that there is a lot of fuel left to push the price parabolic.
The market always tries to trick everyone. Guess how many traders we can trap by going parabolic first and liquidating all the shorts and then dropping like a stone. Bitcoin is bullish but at a tricky spot right now.
I hope this was helpful.
Best,
Felix Kewa
Note
Next resistance reached, retraced and broken. Lets see. It is a bit of a time bomb.Note
Market is becoming vey volatile. That means, the top is near in terms of time. It still can blow off till 8k$, but the market starts to sell much stronger than before.
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