Bitcoin - Is it a Bear Flag or a Bear Trap?
Updated
Good morning traders!
We got a very nice reaction off the 200MA that I mentioned in my last chart.
So far, the 38.2% fib level is holding, but we may not be 100% out of the woods yet as it looks like a bear flag may be forming.
The weekend volume is very weak and it's important to not over trade during low volume/low liquidity times as the risk of Bitcoin making wild moves is much higher.
We also have the holiday's coming up, so it's something you want to consider when planning our trading strategy.
I would let this current structure play out before taking any position. If it breaks down, watch for a potential double bottom along the 200MA.
If it breaks the 200MA with force, i'd flip short with a stop above the candle that broke it.
These are short term scalp plays for 1-3%, but have a great R:R.
Altcoins are something you're definitely going to want to pay attention to. We are starting to see some altcoin fireworks as we're seeing coins like Waves/Stratis/Raiden/Theta start to move very nicely.
So far, the structure is still showing us more upside with Bitcoin, but we may drop to the lower levels ($3650) before we get that upside move we are looking for.
Target to the upside still remains at $4400.
IF $3600 breaks, then I fully expect the lows to be retested.
We got a very nice reaction off the 200MA that I mentioned in my last chart.
So far, the 38.2% fib level is holding, but we may not be 100% out of the woods yet as it looks like a bear flag may be forming.
The weekend volume is very weak and it's important to not over trade during low volume/low liquidity times as the risk of Bitcoin making wild moves is much higher.
We also have the holiday's coming up, so it's something you want to consider when planning our trading strategy.
I would let this current structure play out before taking any position. If it breaks down, watch for a potential double bottom along the 200MA.
If it breaks the 200MA with force, i'd flip short with a stop above the candle that broke it.
These are short term scalp plays for 1-3%, but have a great R:R.
Altcoins are something you're definitely going to want to pay attention to. We are starting to see some altcoin fireworks as we're seeing coins like Waves/Stratis/Raiden/Theta start to move very nicely.
So far, the structure is still showing us more upside with Bitcoin, but we may drop to the lower levels ($3650) before we get that upside move we are looking for.
Target to the upside still remains at $4400.
IF $3600 breaks, then I fully expect the lows to be retested.
Note
Potential head and shoulders forming on the 4 hour along with the potential bear flag.We need the 4 hour to hold.
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