BTC/USD Holds above $39k as BTC PriceFollowing the rejection at the $45,000 overhead resistance, Bitcoin’s (BTC) price has resumed selling pressure. The bears succeeded in breaking below the $41,800 support which resulted in the current downtrend. On the daily chart, the BTC price drops sharply below the moving averages, signaling the resumption of the downtrend. Today, the largest cryptocurrency has fallen to the low the $39,686. This is an important crucial support level to watch. The bears will attempt to break below the $39,000 support. On the other hand, the bulls will attempt to defend the current support to regain bullish momentum. On the downside, if the bears succeed in breaking below the $39,000 support BTC’s price will drop to $36,000 low. Similarly, if the support holds, buyers will attempt to push the crypto above the moving averages. If they succeed, Bitcoin could gradually rally toward $45,000 overhead resistance. Today, buyers and sellers are struggling above the $39,000 support as bulls push BTC price above the $40,000 psychological price level.
Struggling
Trading Divergences - An Alternate View for New TradersTrading divergences is a very common technical analysis strategy, but it comes with one big problem: the most common divergences (not hidden) trade against the trend. This means that new traders can often get into trouble by constantly looking for, and trading, against a dominant trend.
Here's an idea to help you become more profitable over the long-term: identify divergences on your chosen momentum indicator, but only trade on trend continuation signals. I'm not saying you need to do this forever, as once you're experienced you can trade both pullbacks and continuations - but doing so requires multiple layers of confirmation, and a lot of knowledge/planning/experience.
By trading trend continuation signals after divergences, you're stacking the odds in your favour by going with the dominant trend. You're also training your eye to see divergences, and seeing how the markets react to divergences. For new traders this can be a valuable lesson in the power of momentum in financial markets.
So, what are trend continuation signals? It depends on your chosen momentum indicator, so I can only provide general ideas; you need to adapt things according to what you're using. My chart contains a custom momentum indicator, loosely based on the RSI. However, it's far smoother than the RSI, so I can reliably trade precise signals (e.g. for me, a cross of 0). On the RSI, you may choose something a bit further down the scale, for example, a cross below Oversold (20/30). If you're using a Stochastic indicator, you may trade a cross below Overbought (70/80). If you don't understand why I'm suggesting you trade signals at the opposite end of the scale for RSI and Stochastic, let me know.
Hopefully this all makes sense, and remember that it's just an idea if you're a new trader and struggling to make good trades.
Let me know if you have any queries.
DD
Short the shortsqueeze in fossil.As you can see on the chart there was a huge short squeeze in the stock fossil 2 weeks ago. I bought put options a week ago. I see the stock go back to 9,5 dollar on short term. Long term when management is not able to do a turn around, stock will eventually go to 0.
BTCUSD: Bitcoin Still Struggling HereBitcoin Update
Finally, after two fake-ins as Bitcoin spiked above the upper dynamic of the triangle formation of yesterday and came back
to the lower rising dynamic of the triangle on the first occasion and then to the apex of the triangle on the second
occasion before finally reaching it's very modest updside target at 8450-8460 (high at 8483) before falling away again.
It was damned hard work yesterday. The staid steady hands of institutional players are slowly squeezing the life and soul out
of the party. But it still moves faster than pretty much anything else outside of the crypto markets for all that.
Overnight Bitcoin has formed yet another bear flag with two
strikes on the upside signifying 'cold', still with a big rejection spike off the upper parallel of the flag.
It's trying hard to stabilise and to attract enough buyers to spark a counter-rally but cannot get far unless the upper
parallel of the little channel formed since the overnight high was reached can be broken above. Only then can a buy be
considered looking for a counter-rally to 8430 and potentially a spike to the 8481 line again at best before it falls away
again. That's best case scenario right now.
The overall pattern is still bearish and eventually this is still likely to fall away in stages to 7817-7760 range and lower still.
But institutions are playing this like a big marlin on a line, letting it out some and playing it until it tires and then reeling
it back in again. When they let it run to the upside be careful with longs - it can't run far before they reel it back in again.
So really we need to be looking for shorting opportunities and any longs need treating as scalps at best for now.
On the downside we need to see a break below 8200 today to trigger the next short back to 8114-8100 range initially. Any
break below 8100 will tip it back into bear hands again and it should fall to 7946 to begin with and then to 7818-7760.
Below here the next significant support lies at 7584 and then
a bigger drop to 6955.
