Just as the title says I am looking to enter short on Bitcoin until the Daily 50, 100, and 200 EMA's: that gives us 6550, 7659, and 9014 as our targets respectively.
Generally on retracements of this size Bitcoin has reached or breached the 100 EMA but often fails to reach the 200.
The Daily Ichimoku Cloud Tenkan and Kijou give us support around the $7,000 mark.
I will be looking to enter on spot and margin longs between the 200 ($6,550) and 100 ($7,659). I have been shorting since the 11-12k area.
At the time of publication Bitcoin has just breached the 20 EMA of $10,375, which has generally held up the price on every touch since we started the bull run at 4k.
On June 26th, 2019 Bitcoin reached a high of $13,868.44 on CoinBase and Daily RSI reached a level of 91.56 signalling that we were approaching far overbought levels. I began shorting above $11,000 and selling spot above $10,000.
ADX has also failed to reach old highs, falling from a peak above 60 on our run up to $8,500 to between 40-45 on this spike up to $14,000. We can conclude from this that the trend may be weakening as DMI and ADX fail to reach old peaks on each continued new local high.
We have also got a convincingly large Daily Bear Divergence formed by the 3 arrows on RSI on the chart; as RSI failed to make higher highs on the run from $8,500 to $14,000 yet price continued to make new highs.
Bear Divergence:
Price: Higher High
Oscillator: Lower High
Generally on retracements of this size Bitcoin has reached or breached the 100 EMA but often fails to reach the 200.
The Daily Ichimoku Cloud Tenkan and Kijou give us support around the $7,000 mark.
I will be looking to enter on spot and margin longs between the 200 ($6,550) and 100 ($7,659). I have been shorting since the 11-12k area.
At the time of publication Bitcoin has just breached the 20 EMA of $10,375, which has generally held up the price on every touch since we started the bull run at 4k.
On June 26th, 2019 Bitcoin reached a high of $13,868.44 on CoinBase and Daily RSI reached a level of 91.56 signalling that we were approaching far overbought levels. I began shorting above $11,000 and selling spot above $10,000.
ADX has also failed to reach old highs, falling from a peak above 60 on our run up to $8,500 to between 40-45 on this spike up to $14,000. We can conclude from this that the trend may be weakening as DMI and ADX fail to reach old peaks on each continued new local high.
We have also got a convincingly large Daily Bear Divergence formed by the 3 arrows on RSI on the chart; as RSI failed to make higher highs on the run from $8,500 to $14,000 yet price continued to make new highs.
Bear Divergence:
Price: Higher High
Oscillator: Lower High
Note
s3.amazonaws.com/tradingview/snapshots/7/7LcOENGB.pngWell on our way to Target 2. This trade was technically/tragically stopped out on the second rise to 13k; but it looks to be correct. It just took a month or so longer than expected to materialize.
Trade closed: target reached
Target 2 reached. Shorts should have began covering and switching to long at or below 8k.Trade closed: target reached
Target 3 of $6,800 reached.Trade active
s3.amazonaws.com/tradingview/snapshots/t/TjGNNShx.pngLongs Triggered @ Target 3 of $6,550 at midnight the night of 11/24/2019.
My new initial targets for this long based on trendlines in the chart given are:
Target 1: Target 2: Target 3:
~$7,100 ~$7,600-$7,700 ~$8,250
We have already gained +11% in less than 12 hours on this move. Although it could continue to rally in the coming hours; I have just taken profit on the majority of my longs before writing this and am waiting for a potential retrace to get back in.
Best of luck and happy trading!
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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.