BTCUSDT batwing pattern still possibleHey everyone,
Quick update on today's chart.
Let's start with the daily HA chart
The descending pattern is still active, rejection at the $28,800 level, the current candle is still looking strong and much like the previous one. No sign of reversal on this chart, however let's zoom in and see what we find.
The 4 hour chart gives us more detail on what is happening right now
I prefer using HA on this chart too because it allows us to see better when a trend can reverse, it doesn't give us the strength however. We have now seen 1 closed doji candle , that's a good sign and it is positioned in the highlighted entry zone, that could be a very good entry, however we are missing some key ingredients.
Continuing the idea on the current chart(normal candles this time) . Even though we have a glimpse of hope due to the doji formed on the 4h HA chart, the elements we are waiting for in order to enter a long are:
- Price should go over the 200MA on the 4h chart (4h close)
- EMA ribbon should constrict
- In our case the Sublime Waves should display a higher low that would allow us to draw a trendline
Scenarios:
With the way the price is positioned right now a (good)setup at this exact time is very difficult, even if we target lower timeframes , finding the safety exit is very difficult in both directions.
On the upside we have the $34300 area that coincides with :
- Legendary trendline (just above)
- VPVR point of confluence
- Lower part of the previous channel
- Local resistance
On the downside we have the $26200 area that coincides with
- Local support
- Projected drop from the previous high
Not much much compared to the upside if you come to think of it.
I do not exclude a test of the $25000 legendary trendline, however if this happens it will be a fast and violent wick , then returning to safety.
There is also a good possibility that we will range throughout the weekend between the two SR levels the price is stuck into now
What to do now?
Shorting in a still bullish market or a young bear market is very risky, extra precautions must be taken, this are the times accounts are lost due to lack of preparation .
My recommendation :
Trades with SL's on high timeframes (1h,4h) should be avoided for now.
If you really want to trade you can scalp, use small precise position that you only increase when in profit.
