Well damn, things keep progressing positively, and if they keep going like this, there's a possibility to re-live 2017, for those of you who remember. But even if that was the case, I think this is not the right time to enter this market, or at least, do it carefully and gradually, because we're about to face the strongest bear attempt in quite a while.
This is the plan I would suggest:
Before Breaking Out ($10500)
-. If you are already long, you don't need to do anything except check your stops and you have the option to take profit partially.
-. If you're short and underwater, you could remain short until we cross $11K, if that's possible, but you should know your chances for recovery aren't that great, unless you have a significant stash and patience. What you do should be decided according to your particular circumstances.
-. If you're not in the market, I wouldn't enter here. You could short above $10500 and below $11K, or long the pullback after the break out. Stop-losses/risk management plan should be your main focus.
At Breaking Out Level
-. First of all, there is a not super small chance that we get rejected at or right above $10500. This would raise all kinds of alarms for me. Meaning, that we could drop significantly. It would call for caution.
-. Path A is what I would expect of a bullish market. The breakout could easily take us up to $11K, and then we could see a pullback that could bounce around $10500 (re-test), but it could go a bit lower, into the $9Ks.
-. Path B is what I expect in case of a rejection or a pullback that drops below $10500 and above $8200, but leaving the market in its bullish state. The market should become stronger from then on.
-. Path C would be a rejection or pullback that drops below $8200. That would put in question the bullishness of this market, and while we could end up bouncing back up to new ATHs, there's a good chance we'll go much lower. Definitely not the most fun of all the possibilities.
Above the breakout level, we'll probably have the RSI indicator signaling an overbought market and a TD Sequential indicator on the daily signaling a red 9, both of which are strong bearish signals at a high liquidity zone, and this is the main reason I'm suggesting to stay cautious.
Note: personally, I don't believe in the TD Sequential indicator, meaning, I don't really think this indicator actually says anything about the market conditions, but I know it's an indicator that lots of serious traders monitor, so it could influence price in a very real way.
That's it for now, I hope this helps some of you.
Cheers!
This is the plan I would suggest:
Before Breaking Out ($10500)
-. If you are already long, you don't need to do anything except check your stops and you have the option to take profit partially.
-. If you're short and underwater, you could remain short until we cross $11K, if that's possible, but you should know your chances for recovery aren't that great, unless you have a significant stash and patience. What you do should be decided according to your particular circumstances.
-. If you're not in the market, I wouldn't enter here. You could short above $10500 and below $11K, or long the pullback after the break out. Stop-losses/risk management plan should be your main focus.
At Breaking Out Level
-. First of all, there is a not super small chance that we get rejected at or right above $10500. This would raise all kinds of alarms for me. Meaning, that we could drop significantly. It would call for caution.
-. Path A is what I would expect of a bullish market. The breakout could easily take us up to $11K, and then we could see a pullback that could bounce around $10500 (re-test), but it could go a bit lower, into the $9Ks.
-. Path B is what I expect in case of a rejection or a pullback that drops below $10500 and above $8200, but leaving the market in its bullish state. The market should become stronger from then on.
-. Path C would be a rejection or pullback that drops below $8200. That would put in question the bullishness of this market, and while we could end up bouncing back up to new ATHs, there's a good chance we'll go much lower. Definitely not the most fun of all the possibilities.
Above the breakout level, we'll probably have the RSI indicator signaling an overbought market and a TD Sequential indicator on the daily signaling a red 9, both of which are strong bearish signals at a high liquidity zone, and this is the main reason I'm suggesting to stay cautious.
Note: personally, I don't believe in the TD Sequential indicator, meaning, I don't really think this indicator actually says anything about the market conditions, but I know it's an indicator that lots of serious traders monitor, so it could influence price in a very real way.
That's it for now, I hope this helps some of you.
Cheers!
