Bitcoin: You Mean It's Not A Short? Again?
Bitcoin recently sold off from the 10,400 high resulting in the usual run of the mill overly bearish REACTIVE predictions which may have convinced you to sell. Please realize, it is not their fault that they are unable to see the bigger picture. Reacting to price information is a very common mistake and a mark of inexperience. The first thing we told our followers upon the large bearish candle was DO NOT REACT, instead WAIT for the candle to close, and we will then evaluate from there. Since that close, the bearish momentum has been lackluster to say the least. We did NOT sell and continue to hold a position that is aligned with the bigger picture trend which is? (you should be able to answer that). In this video I will further explain what needs to happen in order to reconfirm bearish momentum and what we anticipate from the recent price action.
We work very hard to accomplish one simple thing: remove ourselves from the equation as much as possible when it comes to market timing. That means we evaluate each day with NO opinions, and demand evidence from the market in order to make decisions or adjustments. I emphasize THE MARKET because that is the only source of accurate information we can evaluate. Everything else serves as financial entertainment but no matter how many times I remind people of this, they still can't overcome their NEED for "math and facts" also known as "logic" or "cause and effect". Very large news organizations have done very well thanks to this NATURAL need for order and control. What does this have to do with Bitcoin? There is no logic, all markets operate in the realm of human behavior which CAN be evaluated through EVIDENCE in the form of PRICE ACTION.
Since we let price action and order flow be our guides, here's what they are PROVING now: The 9125 area (bearish outside bar low) has NOT been taken out. This means bearish momentum is NOT in play until this event can unfold. IF the level is broken, 8500 continues to serve as our next support and attractive location for a new swing trade long idea. We shared a very aggressive long around the 9600 breakout (a week ago) which reached it's first target and reduced the risk by 1/3 at 10,200 (this info is shared privately). I mention it because this idea is still in play AND favored by the market while it lingers within the 9564 to 10,168 resistance zone. Why? A weak market does NOT linger around resistance zones, it rejects them QUICKLY. The fact that price took out yesterday's inside bar low (new sell signal) and has not followed through further confirms a LACK of selling and hints toward not so obvious buying activity. IF price holds above the 9125 area, it is likely to squeeze higher and test the 10,400 high over the next week. Please keep in mind as long as the 7695 level is not compromised, the broader price structure favors longs. So the next time the bears over react, consider this perspective before letting confusion undermine your action.
We work very hard to accomplish one simple thing: remove ourselves from the equation as much as possible when it comes to market timing. That means we evaluate each day with NO opinions, and demand evidence from the market in order to make decisions or adjustments. I emphasize THE MARKET because that is the only source of accurate information we can evaluate. Everything else serves as financial entertainment but no matter how many times I remind people of this, they still can't overcome their NEED for "math and facts" also known as "logic" or "cause and effect". Very large news organizations have done very well thanks to this NATURAL need for order and control. What does this have to do with Bitcoin? There is no logic, all markets operate in the realm of human behavior which CAN be evaluated through EVIDENCE in the form of PRICE ACTION.
Since we let price action and order flow be our guides, here's what they are PROVING now: The 9125 area (bearish outside bar low) has NOT been taken out. This means bearish momentum is NOT in play until this event can unfold. IF the level is broken, 8500 continues to serve as our next support and attractive location for a new swing trade long idea. We shared a very aggressive long around the 9600 breakout (a week ago) which reached it's first target and reduced the risk by 1/3 at 10,200 (this info is shared privately). I mention it because this idea is still in play AND favored by the market while it lingers within the 9564 to 10,168 resistance zone. Why? A weak market does NOT linger around resistance zones, it rejects them QUICKLY. The fact that price took out yesterday's inside bar low (new sell signal) and has not followed through further confirms a LACK of selling and hints toward not so obvious buying activity. IF price holds above the 9125 area, it is likely to squeeze higher and test the 10,400 high over the next week. Please keep in mind as long as the 7695 level is not compromised, the broader price structure favors longs. So the next time the bears over react, consider this perspective before letting confusion undermine your action.
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