BTC Update!
Updated
After posting a few historically significant green candles, BTC has been in a consolidation pattern. Everyone is seeing the same pattern but as per usual, many are bias. We just had a strong break upward, smashing past the 200 Daily MA and breaking out of the descending channel we have been stuck in for months. This caused the masses to think the price can only go up. However, good traders know when to stay defensive and hedge their bets. It's worth considering that this rally was sparked by somewhat misunderstood news that China is planning to invest in Blockchain tech of its own. Chinese officials later clearly stated that this is not an endorsement for cryptocurrency. The rally also stalled as it hit the previous support zone around ~9500. This could turn support to resistance (bearish trend) and have this rally be nothing more than a lower high on the way down from ~14000.
My game plan looks like this - Daily close well above the consolidation pattern would have me go short term long towards 10500 scaling out as necessary.
What I see as more likely scenario is a break to the downside to clear out the stops and bouncing off the previous resistance around 8600-8400. If this turns to support it would also be a clean retracement to the .618 Fib. This would be the ideal entry point for me, however I will go short on the way down.
Comment what you think BTC's next move will be!
Happy Trading.
My game plan looks like this - Daily close well above the consolidation pattern would have me go short term long towards 10500 scaling out as necessary.
What I see as more likely scenario is a break to the downside to clear out the stops and bouncing off the previous resistance around 8600-8400. If this turns to support it would also be a clean retracement to the .618 Fib. This would be the ideal entry point for me, however I will go short on the way down.
Comment what you think BTC's next move will be!
Happy Trading.
Note
Closed a short for 1%. We are respecting the 200 daily MA which makes me think the buying will resume.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.