Two possible outcomes for bitcoin.
Key levels are:
Montly resistance at 10770
21 daily MA at 10770
Trendline at 10700-10500
We need a daily close above these levels to confirm the bullish outcome. Right now bitcoin is being pressured down by these key levels.
If bitcoin breaks the level with a possible retest. Then we can look for a long, ideally opened on the retest. There is a high probability it will folow the same path as the previous move up, which is fib based.
First move to .618 retrace to 10700 after that a leg up to trendline and .86 which is at 12000-12500. This is a huge short and hedge area for me and if we make it there I will be taking profit on a large part of my positions.
Bearish scenario states that if we cannot break the 10700 level we will likely fall below the 50ma daily again. In that case I am very sure we will find bottom at 7800: previous resistance and the 20MA weekly holds up in that area. The 20MA weekly had big significance in the 2017 bull run with a large retracement to it followed by a big bounce.
Bearish scenario I would short on retest of the 50MA. Instant buys without sign of trend reversal are in the 7800 region, expect a big bounce there.
Advice is to only enter on wicks right now with order books being very thin, you will get easily liq. with a BART move. It only takes 10 mil to move the market right now. Also keep an eye on the news concerning BITMEX, CFTC. Could turn into bearish sentiment.
Key levels are:
Montly resistance at 10770
21 daily MA at 10770
Trendline at 10700-10500
We need a daily close above these levels to confirm the bullish outcome. Right now bitcoin is being pressured down by these key levels.
If bitcoin breaks the level with a possible retest. Then we can look for a long, ideally opened on the retest. There is a high probability it will folow the same path as the previous move up, which is fib based.
First move to .618 retrace to 10700 after that a leg up to trendline and .86 which is at 12000-12500. This is a huge short and hedge area for me and if we make it there I will be taking profit on a large part of my positions.
Bearish scenario states that if we cannot break the 10700 level we will likely fall below the 50ma daily again. In that case I am very sure we will find bottom at 7800: previous resistance and the 20MA weekly holds up in that area. The 20MA weekly had big significance in the 2017 bull run with a large retracement to it followed by a big bounce.
Bearish scenario I would short on retest of the 50MA. Instant buys without sign of trend reversal are in the 7800 region, expect a big bounce there.
Advice is to only enter on wicks right now with order books being very thin, you will get easily liq. with a BART move. It only takes 10 mil to move the market right now. Also keep an eye on the news concerning BITMEX, CFTC. Could turn into bearish sentiment.
Note
Note
Note
Strategy is working out so far, went long short before we had the 50-200 ma cross and took profit at the 10k level. After that went short DCA at 10,7k and took profit at the 10,55k mark. Now we have to see if we hold the .382 fib and can bounce above the 21ema 1h. If so either I will go long on retest of 10700-10770 on a liquidation wick or go long on a retest of the .382 fib. After that when we make it to the .618 fib I am taking a short.
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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.