This one's a little late as I've been too busy to publish my recent moves.
I recently shorted off the daily 9 on the TD indicator but I have recently got back in at 7880 with a very tight stop at 7700 if it goes there or lower. Reason: it seems to be holding up from 7800 fairly well for the time being and the daily 9 has already given us 2-3 candles down including itself.
I apologize for not posting the short play off the daily td 9, it was a good trade and I shorted from 8400 (close to my target of the symmetrical triangle and just before the resistance of the 50day ma and the log scale descending trendline).
The reason I have posted this chart in log scale is to give all those bulls out there some perspective. For some reason, almost everyone seems to be bullish now so I wanted to play the devils advocate here and give reasons for a possible short. The first big reason should be obvious.
*Bitcoin got rejected from the descending trendline (log scale) and the 50 day ma.
*It topped on a perfect 9 on the TD indicator which can often lead to significant downside when there is so significant resistance above it.
*We are still well below the 200 day ma and the last time we traded this long underneath the 200day ma, Bitcoin was in a bear market for 15months
*That huge short squeeze that happened on a 1hour candle could reverse to a long squeeze as more and more people get scared to short it after so many shorts got rekt that day.
*We traded for too long around 6500-6600 for me to be 100% comfortable on the 6k bottom. Bitcoin doesn't usually give you that much time to buy within 10% of the swing low, especially in a bull market.
*There were no fundamental reasons or news behind that record volume 1 hour candle to breach the symmetrical triangle. In my opinion it was simply just a short squeeze. Way too many people were short and highly leveraged and someone saw that money making opportunity and made them buy back in.
I am not confident in being long or short here but I am back in as of 7880 so I'll keep an eye on it and move with the market for now. I should have a better idea of where it's going in the coming days but for now I am neutral.
I recently shorted off the daily 9 on the TD indicator but I have recently got back in at 7880 with a very tight stop at 7700 if it goes there or lower. Reason: it seems to be holding up from 7800 fairly well for the time being and the daily 9 has already given us 2-3 candles down including itself.
I apologize for not posting the short play off the daily td 9, it was a good trade and I shorted from 8400 (close to my target of the symmetrical triangle and just before the resistance of the 50day ma and the log scale descending trendline).
The reason I have posted this chart in log scale is to give all those bulls out there some perspective. For some reason, almost everyone seems to be bullish now so I wanted to play the devils advocate here and give reasons for a possible short. The first big reason should be obvious.
*Bitcoin got rejected from the descending trendline (log scale) and the 50 day ma.
*It topped on a perfect 9 on the TD indicator which can often lead to significant downside when there is so significant resistance above it.
*We are still well below the 200 day ma and the last time we traded this long underneath the 200day ma, Bitcoin was in a bear market for 15months
*That huge short squeeze that happened on a 1hour candle could reverse to a long squeeze as more and more people get scared to short it after so many shorts got rekt that day.
*We traded for too long around 6500-6600 for me to be 100% comfortable on the 6k bottom. Bitcoin doesn't usually give you that much time to buy within 10% of the swing low, especially in a bull market.
*There were no fundamental reasons or news behind that record volume 1 hour candle to breach the symmetrical triangle. In my opinion it was simply just a short squeeze. Way too many people were short and highly leveraged and someone saw that money making opportunity and made them buy back in.
I am not confident in being long or short here but I am back in as of 7880 so I'll keep an eye on it and move with the market for now. I should have a better idea of where it's going in the coming days but for now I am neutral.