Dear traders,
Here is a fresh update on Bitcoin on the 2-hour chart.
In the symmetrical triangle, the price of Bitcoin has already developed several patterns. Our latest head shoulder formation can already be extended to a larger size again.
Note that the small HS shoulder formation also remains valid as does the bearish rising wedge.
The scenario could go as follows but as always, this is a hypothesis, my idea formed during the formation of the price.
1 The price of Bitc follows the red trajectory.
2 The price of Bitc follows the orange trajectory.
Some bearish facts at the moment.
1 BTC is moving in a berish symmetrical triangle.
2. A larger bearish rising wedge has been formed with also target the older previously formed bottom.
3. A strong resistance has come in at 37324 USD.
4. BTC has formed a smaller double top.
5 There is no panic or volume climax yet. This indicates continuation of the downtrend.
6. On higher timeframes Bitcoin is particularly bearish. weekly macd, MAs and so on.
7 Volume increases in the decline and decreases in the rise which is bearish.
8. A slightly larger bearish head shoulder formation has formed with the target being 29000
Important Support and resistance at this time.
- Upper and lower triangle trend lines
- 37268, 37414 33396, 31045 and 30000
There is not much point in starting to analyze all kinds of ALTS at the moment because the prices are hanging heavily on the leader Bitcoin and the possible test of a double bottom.
Remember that the money management rule of 1% applies to NOT correlated coins. There is no such thing so 10x 1% risk = 10% risk and that is way too much if stops are hit. Solution: reduce the risk per trade if you still want to trade ALTS or use shorter stops but you have more chance to get stopped out time after time. Stops need to be placed on strategic places to reduce risk of too early stopped out while price returns without your position.
By the way, I post a new chart here so that you guys can press the right button and follow price on the chart. That is not possible with a screenshot.
Wish you all good luck!
Disclaimer Traders this is my view, no advice to buy or sell. Also always do your own research!
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