BTCUSD Double Bottom Trade
Updated
Clearest major double bottom on BTC in a long time.
Fundamentals for Reversal: The sharp drop was largely caused by fear and uncertainty due to Segwit2x Hard Fork cancellation and BCH shilling. However we have already corrected to prices before the hype of the hard fork even began. meanwhile, the massive sell-off of BCH 2 days ago has made it rather clear that this was a rather elaborate "Pump and Dump" operation. There is probably more fear surrounding buying into BCH vs. fear of buying into BTC.
Technicals: Textbook double bottom with bottom prices within 4% range, and two advances more than 10%, backed by rising volume on both advances, and strong volume throughout the second advance. This is a textbook stop loss and target of 2x stop loss, slightly adjusted for previous ATH.
Note: Although there is a camp of traders waiting for correction to 4800 or 5000, it is not uncommon for BTC to move on without filling the last bit of a gap. It is less common for a major correction to have such a clear double bottom. My guess is that the volatility in the double bottom has satisfied most big trader's targets even without getting to 5000usd exactly.
Trade:
Entry - Between 6480 to 6630
Stop Loss - 5600
Target - 7900
Fundamentals for Reversal: The sharp drop was largely caused by fear and uncertainty due to Segwit2x Hard Fork cancellation and BCH shilling. However we have already corrected to prices before the hype of the hard fork even began. meanwhile, the massive sell-off of BCH 2 days ago has made it rather clear that this was a rather elaborate "Pump and Dump" operation. There is probably more fear surrounding buying into BCH vs. fear of buying into BTC.
Technicals: Textbook double bottom with bottom prices within 4% range, and two advances more than 10%, backed by rising volume on both advances, and strong volume throughout the second advance. This is a textbook stop loss and target of 2x stop loss, slightly adjusted for previous ATH.
Note: Although there is a camp of traders waiting for correction to 4800 or 5000, it is not uncommon for BTC to move on without filling the last bit of a gap. It is less common for a major correction to have such a clear double bottom. My guess is that the volatility in the double bottom has satisfied most big trader's targets even without getting to 5000usd exactly.
Trade:
Entry - Between 6480 to 6630
Stop Loss - 5600
Target - 7900
Trade active
We had a very nice entry and rise. But the rise is looking to be too fast. This is a good place to take intermediate profits. Beware of whiplash!! Trade safe everyone ^^Trade closed: target reached
This target reached, but still holding on to some positions as per this idea:
Great trade everyone!!
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