! Not a financial advice - This is my trading diary ! It helps me think about my ideas.
I have noticed lately that almost every trader is watching this pennant formation and waiting for an imminent breakout. Well, I must tell you to be a little careful with Fakeouts.
- In other posts I have explained that there is still a low volume area left on Feb 08 that might push price easily towards the "bull trap zone" - Fibs .5 / .618 - (45 / 50K)
- I've seen these moves being played out many times and this might be just another attempt to trap as many leveraged positions as possible before we head lower.
- But there is bullish hope: If this trap doesn't work well and shorts get trapped instead, bulls can push price past .618 (51.5K region) and win the fight.
- A break towards the downside can bring price to mid 20K level, a region with strong confluences between fibs, volume nodes, CME gaps, etc.
- There bulls with big pockets can trap shorts and squeeze them back to mid 30K region. If they fail to do so, Bears win and we will see a sub 20K BTC again.
What to do?
- If you are not an experienced trader, try not to enter any breakout attempt because - I repeat - you might get trapped and rekt. Let the big boys play and jump only after one side clearly wins the battle.
- If you are an investor, buy the dip -> but no financial advice.
I have noticed lately that almost every trader is watching this pennant formation and waiting for an imminent breakout. Well, I must tell you to be a little careful with Fakeouts.
- In other posts I have explained that there is still a low volume area left on Feb 08 that might push price easily towards the "bull trap zone" - Fibs .5 / .618 - (45 / 50K)
- I've seen these moves being played out many times and this might be just another attempt to trap as many leveraged positions as possible before we head lower.
- But there is bullish hope: If this trap doesn't work well and shorts get trapped instead, bulls can push price past .618 (51.5K region) and win the fight.
- A break towards the downside can bring price to mid 20K level, a region with strong confluences between fibs, volume nodes, CME gaps, etc.
- There bulls with big pockets can trap shorts and squeeze them back to mid 30K region. If they fail to do so, Bears win and we will see a sub 20K BTC again.
What to do?
- If you are not an experienced trader, try not to enter any breakout attempt because - I repeat - you might get trapped and rekt. Let the big boys play and jump only after one side clearly wins the battle.
- If you are an investor, buy the dip -> but no financial advice.