If you have been following BTC the last few weeks you have probably been accumulating for the long haul.
In the short term the market still has not made a decision as to which way it wants to go (other than continue sideways).
If the current pattern breaks through the downtrend line we are likely going to 5700.
So how should you trade it?
If you watch BTC all day - there is likely and excellent short opportunity as the right side of the pattern plays out.
Some people ask what the point of TA since it seems to be vague. The point is to arm you with the knowledge you need to make the best possible decision based on what we can see. We all have to wait for confirmation of pattens before trading - otherwise we are trading on "hunches". We know that BTC will trade above these levels again - so its really a race to the bottom to try and wrestle the best price out of someones hands.
If we are in a true H&S pattern it will bring us down to the 5000s - it makes sense to set your stop below the right shoulder - if we see a breakout your stop is never triggered - and if we see a major downtrend you''ll be in a good stop to pickup more BTC.
Im forever bullish on BTC but it is starting to look like we are going down before we start testing the higher resistance levels again.
In the short term the market still has not made a decision as to which way it wants to go (other than continue sideways).
If the current pattern breaks through the downtrend line we are likely going to 5700.
So how should you trade it?
If you watch BTC all day - there is likely and excellent short opportunity as the right side of the pattern plays out.
Some people ask what the point of TA since it seems to be vague. The point is to arm you with the knowledge you need to make the best possible decision based on what we can see. We all have to wait for confirmation of pattens before trading - otherwise we are trading on "hunches". We know that BTC will trade above these levels again - so its really a race to the bottom to try and wrestle the best price out of someones hands.
If we are in a true H&S pattern it will bring us down to the 5000s - it makes sense to set your stop below the right shoulder - if we see a breakout your stop is never triggered - and if we see a major downtrend you''ll be in a good stop to pickup more BTC.
Im forever bullish on BTC but it is starting to look like we are going down before we start testing the higher resistance levels again.
Comment:
We just broke through the neckline -which is confirmation that we are retracing to the 5000s as mentioned above.
Comment:
Don't you hate it when you miss your buy while you are sleeping by only a few dollars?
The bad/good news is - we will likely take another plunge back to the 5700s before we begin to think about any recovery. Weekend trading will accelerate the pattern but as long as we stay below the downtrend line - anticipate some lower prices.
The bad/good news is - we will likely take another plunge back to the 5700s before we begin to think about any recovery. Weekend trading will accelerate the pattern but as long as we stay below the downtrend line - anticipate some lower prices.
Comment:
It looks like weve broken through the downtrend - its still early but I think we scrapped the bottom today - weekend trading should give some relief.