do not SHORT Bitcoin with 20XA consolidation range happens when the market trades sideways, in a neutral capacity. This sideways trading is neither bearish nor bullish, thus neutral. The bearish or bullish tendencies can only be defined based on the broader market structure.
If the consolidation range develops coming from a major drop, you can say that the market is bearish and the consolidation a bearish consolidation even if the breakout happens to the upside. Once it happens to the upside we can say that a reversal developed but the tendencies were bearish nonetheless.
If the consolidation range develops coming from a major rise, you can easy say while being correct that the market is bullish and the consolidation phase a bullish one, because of the bigger structure, previous price action and the chart.
Bitcoin is consolidating with bullish tendencies but there is a boundary which we call resistance and another boundary which we call support, this is the trading range. When the market is ranging, this is when margin traders lose the most because the trend remains hidden and money tends to be made when the market is in a clear trend.
Whenever the upper boundary gets challenged we get a retrace and a test of support. Whenever the lower boundary gets tested prices recover and move back up. This process gets repeated for as long as it is needed to remove all the weak hands, most of the signals are pure noise.
This is the situation in which we find Bitcoin today. Ultra-bullish but sideways and anything can happen short-term. Do not SHORT Bitcoin with 20X. You might end up with some fast and easy profits.
Thank you for reading.
Namaste.
