If we look at the bearish impulse wave that began back on May 5th, there are a few counts that can bring us to this point...this is one of them. Depending on what side of the fence they were on, people believed we had either finished wave 5 or were still working on finding the close. Statically, wave 5 usually closes between .618 and 1.00 of the length of waves 0-3 stacked onto the close of wave 4. If you take the length of 0-3 on this count and stack it onto the close of wave 4, it brings you exactly to where BTC stopped today. It also could give us an "E" on what appears to be an large horizontal triangle. This suggests that we could be at the cusp of a pretty big opportunity.
That being said, on rare occasion wave 5 pulls off a 1.618 extension of the length of waves 0-3. If BTC decides that a further ext is going to be the move to make, that would put us at $5,400. If BTC extends beyond that, we have a bigger issue at hand that may end with me going back to options. I am not trying "catch the bottom" as a day trader. That is a dangerous game that I do not play. I do use a smaller portion of my over-all portfolio for longer-term swing trades and I did stack my first 20% (of my swing trade portfolio) at $6,650 given that it was a target for me.
Be careful with letting the hopes/fears of others cause you to buy into a story that you will hold on to come hell or high water. When we start seeing big candles, there is a human trait that wants to prescribe to an extreme (sell its going to $0 or go all in this is going to $20k). The charts that get the most likes are the ones that give absolutes...you know, the ones that say exactly what will happen and make it sound like getting on or off the train will result it riches or catastrophe. Remember, you can make just as much money if this bounces between $6k and $10k for the next year as you would if it went to $20k during the same time period. The only thing that no stop/losses and FOMO consistently create is another sad story. Trade smart.
That being said, on rare occasion wave 5 pulls off a 1.618 extension of the length of waves 0-3. If BTC decides that a further ext is going to be the move to make, that would put us at $5,400. If BTC extends beyond that, we have a bigger issue at hand that may end with me going back to options. I am not trying "catch the bottom" as a day trader. That is a dangerous game that I do not play. I do use a smaller portion of my over-all portfolio for longer-term swing trades and I did stack my first 20% (of my swing trade portfolio) at $6,650 given that it was a target for me.
Be careful with letting the hopes/fears of others cause you to buy into a story that you will hold on to come hell or high water. When we start seeing big candles, there is a human trait that wants to prescribe to an extreme (sell its going to $0 or go all in this is going to $20k). The charts that get the most likes are the ones that give absolutes...you know, the ones that say exactly what will happen and make it sound like getting on or off the train will result it riches or catastrophe. Remember, you can make just as much money if this bounces between $6k and $10k for the next year as you would if it went to $20k during the same time period. The only thing that no stop/losses and FOMO consistently create is another sad story. Trade smart.