BTC: Revisiting The Larger Picture - How To Trade Bitcoin!
First of all, congratulations to everyone may have bought the dip on our previous short term analysis on longing the market:
Further continuing our analysis for the bigger picture, we may be about to face strong resistance, first followed by impulse intraday trading. The current catalyst may be due to Square having invested 50M into Bitcoin and now making headlines in the crypto community. While this is bullish for its overall fundamentals and future, let's not forget there were many times of bull traps with such news that led up after such a catalyst. Here I will be approaching with a small risky counter trade against the whole market, which may be currently bullish.
Here is why a drop is almost certainly possible:
1. Extremely overbought RSI on the 1H chart, and can transfer over to the 4H.
2. We are trading in a large parallel channel that is now about to be tested. A much higher Risk Reward exists when we start approaching the legacy resistance trend line.
3. Previous fractal is printing a very similar picture before the major drop happened.
These are all just observations and based on a series of evidence racked up from my own research!
Trade Safe.
X Force
Further continuing our analysis for the bigger picture, we may be about to face strong resistance, first followed by impulse intraday trading. The current catalyst may be due to Square having invested 50M into Bitcoin and now making headlines in the crypto community. While this is bullish for its overall fundamentals and future, let's not forget there were many times of bull traps with such news that led up after such a catalyst. Here I will be approaching with a small risky counter trade against the whole market, which may be currently bullish.
Here is why a drop is almost certainly possible:
1. Extremely overbought RSI on the 1H chart, and can transfer over to the 4H.
2. We are trading in a large parallel channel that is now about to be tested. A much higher Risk Reward exists when we start approaching the legacy resistance trend line.
3. Previous fractal is printing a very similar picture before the major drop happened.
These are all just observations and based on a series of evidence racked up from my own research!
Trade Safe.
X Force
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