BTC Update! $6k finally breaks down and we were ready!
Hello crypto traders!
Sorry I was just too busy yesterday to get a chart up with all that chaos going on. But lets step back, take a deep breath and look at what we have been discussing for days now.
A week ago I had discussed the trend changing and had finally gotten stopped out of my last trade position and locked in profits around $6440. I was then happily sitting in cash and waiting for the bulls to show something.
A couple of days ago I posted the more detailed version of all the red flags and signs of the trend change coming for the bears to be in full control. We cannot ignore clear bearish signs and if trading this market you have to protect your capital.
From where I got stopped out, BTC then showed a 20% drop, majority of which came yesterday. I continue to remain cash and have zero interest in trying to catch a falling knife as in my opinion, you will get cut far too many times trying to catch a falling bottom.
Yesterday we fell to $5280 extremely quickly. I recognize this had a lot to do with BCash fork and some big shots talking all sorts of junk with each other. Honestly, I keep an ear open to it but overall its pretty irrelevant to me. As a trader, I always have stop losses in position so even if I had still been in a position, I know my risk would have been minimal.
So from $5280, we saw the bounce up towards $5645 which gave us a easy lower high and fully expected. Today we saw another drop for another lower low and fell to $5188. Bulls are currently in a bounce off of that and anything under $5645 would just be another lower high. Bulls currently sitting around $5600 as I type this which is great for this bounce. IF the bulls beat $5645 then it would give them a 4 hour higher high. From there I'd want to see a higher low form (higher than $5188) and then another higher high to confirm the bulls are actually making the move to change the trend.
I am in no rush to re-enter this market as the volatility has been significant the last 2 days and we see pretty big pushes. You can absolutely make good size scalp trades here but pretty risky for my personal trading style. I'd rather be patient and have the bulls confirm a trend change for the time being and get their higher lows and higher highs going.
Due to the massive drop across crypto the last two days, it does have me interested in other coins just for more significant bounces in terms of a % gain. But BTC remains king and I will continue to primarily follow it on the charts as it dictates pretty much everything within the space for being bullish or bearish. I know some follow alt coins and their fundamentals but for me personally, the fundamentals in alt coins are useless. Most of these projects supposedly have great fundamentals and are progressing "ahead of schedule", etc etc yet alts are still down 70-95% on these great fundamentals. I will not care for alt fundamentals until they can become more like traditional markets and offer up balance sheets, profit/loss, revenue streams, etc. to give us information to pull from rather than just a few "developers" talking on some social media platform. Sorry for the long post/rant but please keep your capital safe. Always have stop losses in place as I know so many were crushed with yesterdays dump if they have no protection in place.
Sorry I was just too busy yesterday to get a chart up with all that chaos going on. But lets step back, take a deep breath and look at what we have been discussing for days now.
A week ago I had discussed the trend changing and had finally gotten stopped out of my last trade position and locked in profits around $6440. I was then happily sitting in cash and waiting for the bulls to show something.
A couple of days ago I posted the more detailed version of all the red flags and signs of the trend change coming for the bears to be in full control. We cannot ignore clear bearish signs and if trading this market you have to protect your capital.
From where I got stopped out, BTC then showed a 20% drop, majority of which came yesterday. I continue to remain cash and have zero interest in trying to catch a falling knife as in my opinion, you will get cut far too many times trying to catch a falling bottom.
Yesterday we fell to $5280 extremely quickly. I recognize this had a lot to do with BCash fork and some big shots talking all sorts of junk with each other. Honestly, I keep an ear open to it but overall its pretty irrelevant to me. As a trader, I always have stop losses in position so even if I had still been in a position, I know my risk would have been minimal.
So from $5280, we saw the bounce up towards $5645 which gave us a easy lower high and fully expected. Today we saw another drop for another lower low and fell to $5188. Bulls are currently in a bounce off of that and anything under $5645 would just be another lower high. Bulls currently sitting around $5600 as I type this which is great for this bounce. IF the bulls beat $5645 then it would give them a 4 hour higher high. From there I'd want to see a higher low form (higher than $5188) and then another higher high to confirm the bulls are actually making the move to change the trend.
I am in no rush to re-enter this market as the volatility has been significant the last 2 days and we see pretty big pushes. You can absolutely make good size scalp trades here but pretty risky for my personal trading style. I'd rather be patient and have the bulls confirm a trend change for the time being and get their higher lows and higher highs going.
Due to the massive drop across crypto the last two days, it does have me interested in other coins just for more significant bounces in terms of a % gain. But BTC remains king and I will continue to primarily follow it on the charts as it dictates pretty much everything within the space for being bullish or bearish. I know some follow alt coins and their fundamentals but for me personally, the fundamentals in alt coins are useless. Most of these projects supposedly have great fundamentals and are progressing "ahead of schedule", etc etc yet alts are still down 70-95% on these great fundamentals. I will not care for alt fundamentals until they can become more like traditional markets and offer up balance sheets, profit/loss, revenue streams, etc. to give us information to pull from rather than just a few "developers" talking on some social media platform. Sorry for the long post/rant but please keep your capital safe. Always have stop losses in place as I know so many were crushed with yesterdays dump if they have no protection in place.
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