Bitcoin:BTCUST Bulls have won out - retest of 7730 on wayBitcoin: BTCUSD Bulls have won the battle for high ground above 6950. look to Buy dips from here to the highs
Well we should have booked about 200-240 profit on long from 7000 as Bitcoin spent 19 minutes dancing either side the
little dynamic, a mercifully short battle before bulls won the day, triggering the long with stops 50 under the line which
were never hit this time. So sorry for raising that stop too high on the original longs from pivot area at 6450-6470 in a
vain effort to protect newer readers from whipsaw risk - just got too cautious, too overprotective. My bad, not chart's.
And to add insult to injury, now we've been stopped out of what was, technically, a sensible trade: the short from 6950,
losing 50 points before spreads. The fact that bulls have won 6950 is very significant.
Bitcoin was expected to encounter a real problem at 6940-6950 and start to come off by at least 250 points which
we were looking to bag...it did come off from 6963, but only 150 points or so before rallying again.
The fact is that 6950 should have stopped Bitcoin dead in its tracks...but people who weren't interested in buying at 5750
are now interested at 6950 - once 6950 is taken back by the bulls the chart will be telling us that the Bulls have won the
war - not just a big battle, but the war to occupy the high ground above 6950 again. That will mean there's no point in
trying to fight this any longer. At that point, if we see it develop, we have to switch back to buying dips - that's a
pennant formation that's been hammered out since Sunday with an upside target at 7730 - it's likely to push higher still in
near term to 7077, and potentially to the next line of resistance at 7137 but unless day-trading we need to look to
buy on the next decline...this is now 'hot' again after being so 'cold' just a few days ago. Such is Bitcoin. Do not expect it to
come back far when the next decline sets in, to 6990-6940 range at absolute lowest now and more likely only to touch
the lower parallel of the impulse wave shown on the chart - 7077 could be as low as it goes, so strong is this wave,
so look to get long and manage your risk.
Long story short, this has 600-700 points upside to 7730 minimum and about 250 max likely downside to 6950 - so you
can go long here and not wait around but the stop has to be under 6860 for now to stay away from whipsaw, or wait and
hope we get a decine to the lower parallel or even a retest of 6950. That would be the ideal, but we are not likely to see it.
Traders choice, down to appetetite for risk. A test of the lower parallel is probably all we are going to see and maybe
not even that...even now it's close to a 3 to 1 return on risk , even with stops under 6950. Trader's choice, dependent on
risk profile. Be lucky. And if day trading keep buying dips back up to the highs/minimum upside target at 7730.
