Navigating the current BITCOIN landscape, get ready to act
So what has really happened since that ridiculous pump in late October? Looking at the chart here, there's basically just a few things that happened, and only 1 i consider to be significant. Price exploded off of 7400, barreling through resistance after resistance and topping out at well over 10k. A healthy chunk of those gains were immediately given back, and we settled at a bit over 9k. So from 7400, we burst through 4 levels of major resistance, but by the close of the Oct 26th daily candle we had given one level back. In the wake of that pump we had the 7800 level, 8800 level, and the trend line down from the 14k high. A few days ago, we gave up 8800. Now half of the accomplishments from that pump have been undone. On my chart here I've got current resistance in red and current support in green. So to sum it up we've broken through some resistances, lost some support, and have held some new support. The significance comes from which support has been held.
The most important victory from that pump in my opinion is taking and holding the trendline down from 14k (solid green line on my chart). We crossed it CONVINCINGLY, have held it for weeks, and are now ready to re-test it. Had we pumped through it, and immediately after retested it, I'd say its a wash whether we're holding it. But the way we've crossed through it and held above it, I'd say we're ready to hold the line. My prediction is that in the next few days price will wick through that trendline, close back above and begin the bull quest of taking out the resistances... eventually seeking to take out the high.
So how would someone make money from this? What is the PLAN? A decent plan of attack could be to wait for price to convincingly wick through the trendline (not a 3 dollar probe), and as soon as the daily candle closes back OVER the trendline, go long. Where to put the stop depends on how hard it wicks through the trendline really. I'd stick my stop under the closest level below the wick. You want to protect yourself against price seeking stops right under the low, so put a level between the bottom of the wick and your stop. The ballsier move would be to go long during the red candle while it's under the trendline, and use ATR or a few levels to gauge a stop.
On the flip side, if it crosses through that trendline and closes below, I'd be very worried. Wait for the price to retest from below and sell. Target would be 5500 :(
The most important victory from that pump in my opinion is taking and holding the trendline down from 14k (solid green line on my chart). We crossed it CONVINCINGLY, have held it for weeks, and are now ready to re-test it. Had we pumped through it, and immediately after retested it, I'd say its a wash whether we're holding it. But the way we've crossed through it and held above it, I'd say we're ready to hold the line. My prediction is that in the next few days price will wick through that trendline, close back above and begin the bull quest of taking out the resistances... eventually seeking to take out the high.
So how would someone make money from this? What is the PLAN? A decent plan of attack could be to wait for price to convincingly wick through the trendline (not a 3 dollar probe), and as soon as the daily candle closes back OVER the trendline, go long. Where to put the stop depends on how hard it wicks through the trendline really. I'd stick my stop under the closest level below the wick. You want to protect yourself against price seeking stops right under the low, so put a level between the bottom of the wick and your stop. The ballsier move would be to go long during the red candle while it's under the trendline, and use ATR or a few levels to gauge a stop.
On the flip side, if it crosses through that trendline and closes below, I'd be very worried. Wait for the price to retest from below and sell. Target would be 5500 :(
Comment:
Broke through the trendline, let's see if it closes back above today