Bitcoin continues to decline from it's recent run up. Many think the bottom has been hit and a bull market is imminent. Many think "Goblin Town" is on the way. Some fall in between these extremes. My idea is to trade safely and avoid goblin town while leaving the door open to a new bull run.
Note: These are all rough ranges. The zones depicted are not accurate and are based roughly on my ridiculous idea of where supports, resistances and price actions are. (Basically nonsense influenced by intuition and inadequate research)
1)The "Short Term- Short Zone" is an area where if you're overall bearish, it would make sense to short, or if you're holding a long from a higher price range, but you think the price might continue to decline, you might want to close at a lesser loss.
2)ETF likely dates: Based on recent history, I wouldn't put too much stock in this (good news=price dumping). But.... we can't ignore it as well. The way the ETF date lines up with the possible divergence to a bullish trend or a "new low " bearish continuation is hard to ignore. Look for news, but don't expect anything. It's pretty cut and dry in that if it's approved, i'd expect a run up of some amount, yet if it's rejected, I would expect a sell-off. If it is delayed, probably a sell-off, but who knows? Good luck trading this zone! (I'm going to be short on this and my reasoning is that if the ETF is rejected or delayed, then I win. Yet if it is approved, I can close and jump in as it starts going higher and i'll still win.
3)New Low Possible Stop Zone: It kind of explains itself. If 6800 breaks down with volume, then in my opinion it's pretty likely to at least approach a new low (5k or lower). So much good news has been coming out for weeks or even months and btc has found lower lows and lower highs. It would be ridiculous to rule out a lower low at this point. We're in a bear market for now. Maybe the market responds to the news and bullish sentiment and we only bottom off of something between 6400 an 5400, and it's not a lower low. Maybe we break 5k and bounce off 4800 or even much lower. I'll be glad I sold in the range near 6700 or higher. I think if we break 6800, we'll at least drop to 6400, but we'll see.
4)The Bullish Long Zone is the easiest to explain. If we hit the green zone, it means we've likely (not definitely) found our lowest low and are heading for higher lows and higher highs. I'm going long.
Note: These are all rough ranges. The zones depicted are not accurate and are based roughly on my ridiculous idea of where supports, resistances and price actions are. (Basically nonsense influenced by intuition and inadequate research)
1)The "Short Term- Short Zone" is an area where if you're overall bearish, it would make sense to short, or if you're holding a long from a higher price range, but you think the price might continue to decline, you might want to close at a lesser loss.
2)ETF likely dates: Based on recent history, I wouldn't put too much stock in this (good news=price dumping). But.... we can't ignore it as well. The way the ETF date lines up with the possible divergence to a bullish trend or a "new low " bearish continuation is hard to ignore. Look for news, but don't expect anything. It's pretty cut and dry in that if it's approved, i'd expect a run up of some amount, yet if it's rejected, I would expect a sell-off. If it is delayed, probably a sell-off, but who knows? Good luck trading this zone! (I'm going to be short on this and my reasoning is that if the ETF is rejected or delayed, then I win. Yet if it is approved, I can close and jump in as it starts going higher and i'll still win.
3)New Low Possible Stop Zone: It kind of explains itself. If 6800 breaks down with volume, then in my opinion it's pretty likely to at least approach a new low (5k or lower). So much good news has been coming out for weeks or even months and btc has found lower lows and lower highs. It would be ridiculous to rule out a lower low at this point. We're in a bear market for now. Maybe the market responds to the news and bullish sentiment and we only bottom off of something between 6400 an 5400, and it's not a lower low. Maybe we break 5k and bounce off 4800 or even much lower. I'll be glad I sold in the range near 6700 or higher. I think if we break 6800, we'll at least drop to 6400, but we'll see.
4)The Bullish Long Zone is the easiest to explain. If we hit the green zone, it means we've likely (not definitely) found our lowest low and are heading for higher lows and higher highs. I'm going long.
Comment:
The low volume fight between bulls and bears is getting pretty intense. Bitcoin is in a real no mans land right now. It's riding on major support, yet there's not enough fuel to bounce up convincingly. My chart is valid for now. Look to enter a short-term short between 7120 and 7350, if it even gets that high. This is the game of zones, so the levels are ranges rather than specific numbers. I expect the ETF news to be bearish, but really cant say. So, whatever position you are in, prepare for a serious run up or down between the 10th to 16th on news.