Right now the price has been slightly dipping for the last 5 days from the 9500 region. Currently there several scenarios I can see
Bullish Scenario 1: Wick to 8950-9000 region where a double bottom is formed and the bull run continues to take us to the 11k region
Bullish Scenario 2: Price corrects itself to the 21 weekly EMA zone as it did several times in the 2017 bitcoin bull run. The 21 ema right now is 8600. Its likely the price can wick several % below the 21 ema zone to 8250-8450 zone.
Bearish Scenario 1: Price dumps to 21 ema zone and has a dead cat bounce without much followthrough to 9-9.1k and bitcoin continues to dump sub 8k
Bullish Scenario 1: Wick to 8950-9000 region where a double bottom is formed and the bull run continues to take us to the 11k region
Bullish Scenario 2: Price corrects itself to the 21 weekly EMA zone as it did several times in the 2017 bitcoin bull run. The 21 ema right now is 8600. Its likely the price can wick several % below the 21 ema zone to 8250-8450 zone.
Bearish Scenario 1: Price dumps to 21 ema zone and has a dead cat bounce without much followthrough to 9-9.1k and bitcoin continues to dump sub 8k
Comment:
Price suddenly jumped to 9380-9400 zone. While I am still bearish, the 2hr and 4hr candle looks bullish. It is now a greater possibility of price reaching the 9500 downtrend resistance zone before a further move down or breaking resistance. A stop loss for the short can be set at 9550, and a small long can be hedged in case we break out from here.
Comment:
If you are planning to short this can be a good entry to short, with some amount in the 9450-9500 zone. A small long can be placed to hedge in case we have a break out but given the general momentum downwards its less likely. If you want to hedge you can do the following
Primary Position x2.5 lev
Hedge Position x1.25 lev
Primary Position x2.5 lev
Hedge Position x1.25 lev